Semtech Corporation Stock (NASDAQ:SMTC) 3Q Misses Estimate, Shares Down

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Semtech Corporation (NASDAQ:SMTC) declined 12.13% to $14.92 after it posted an adjusted quarterly profit that missed estimates, and said it has agreed to acquire privately held Sierra Monolithics Inc for $180 million in cash.

Semtech expects the transaction to immediately add to its adjusted earnings per share and adjusted gross margins.

However, the company expects to incur a one-time tax liability of about $33 million in third quarter of fiscal 2010.

For the third quarter ended Oct. 25, Semtech posted a net loss of $20.9 million, or 34 cents per share, compared with a net profit of $11.5 million, or 19 cents per share, a year earlier.

Excluding items, the company posted earnings of 19 cents a share. Revenue fell 6 percent to $75.1 million.

Analysts on average expected earnings of 21 cents a share, excluding exceptional items, on revenue of $72.5 million, according to Thomson Reuters I/B/E/S.