Semtech Corp. shares fell more than 7 percent early Thursday, a day after the semiconductor maker said first-quarter net income dropped 39 percent as cost-cutting failed to offset slower sales.

Late Wednesday, the Camarillo company reported net income of $4.9 million (8 cents per share) for the quarter ended April 26, compared with net income of $8.1 million (13 cents) a year ago. Revenue fell 19 percent to $60.1 million.

Operating costs fell 13 percent to $27.8 million as the company, which makes chips for high-end consumer, computing, communications and industrial equipment, cut its sales force and trimmed product development and engineering costs.

?espite a very difficult environment, Semtech delivered solid operating results in Q1,?Chief Executive Mohan Maheswaran said in a statement. ?e expanded gross margins, lowered inventory and grew our cash balance.?The company? cash and equivalents grew 4.5 percent to nearly $259 million, and the gross profit margin was 54.5 percent, compared with 53.2 percent in the fourth quarter.

Semtech shares were down $1.18, or 7.6 percent, to $14.26 in midday trading on the Nasdaq.