Standard Microsystems posts 1st-qtr loss as revenue slides, but outlook sends shares higher

Standard Microsystems post 1Q loss, lower sales

HAUPPAUGE, N.Y. — Chip maker Standard Microsystems Corp. on Thursday posted a first-quarter loss, reversing a year-ago profit, hurt by lower sales and a settlement charge.

For the three months ended May 31, the company posted a loss of $9.2 million, or 42 cents per share, down from a profit of $4.5 million, or 20 cents per share, in the same period a year earlier.

Excluding one-time items, including a charge for a settlement in a patent lawsuit, the company’s loss totaled 15 cents per share in the latest quarter.

Revenue fell 33 percent to $62.5 million from $92.8 million.

“We are encouraged by continued signs of health in the PC market, with increasing end customer demand for both commercial and low-end PCs,” said Christine King, president and CEO, in a statement.

She added that the company is “seeing promising indicators that the semiconductor market will deliver more normal seasonal patterns” in the second half of the year.

Looking ahead, the company adjusted earnings between break even and a profit of 8 cents per share. Revenue is forecast in the range of $68 million to $72 million.

Shares jumped $1.72, or 9 percent, to $21 in after-hours trading, having closed the regular session up $1.16, or 6.4 percent, at $19.28.