Standard Microsystems posts 4th-quarter profit, reversing loss
By APWednesday, April 7, 2010
Standard Micro posts 4Q profit above Street views
HAUPPAUGE, N.Y. — Chip maker Standard Microsystems Corp. posted a fiscal fourth-quarter profit above Wall Street’s expectations Wednesday, reversing a year-ago loss that was weighed by goodwill impairment expenses and lower revenue.
It also posted fiscal first-quarter earnings and revenue guidance above analysts’ forecasts and its stock was up over 7 percent in after-hours dealings.
For the three months ended Feb. 28, the company earned $946,000, or 4 cents per share, after posting a loss of $71.6 million, or $3.27 per share, in the same period a year earlier.
Excluding items, the company earned 18 cents per share in the latest quarter, compared with a loss of 54 cents a share a year earlier. The year-ago results included goodwill impairment costs of $52.3 million.
Revenue rose 62 percent to $83 million from $51.2 million, surpassing estimates.
Analysts, on average, were expecting a profit of 12 cents per share, excluding items, on revenue of $79.9 million, according to a poll by Thomson Reuters.
The company said the quarter’s revenue and profit exceeded its prior expectations despite the challenging economy.
“PC and automotive sales improved in the second half (of the year) and we improved our market position in all of our target end markets,” said Christine King, Standard Microsystems’ president and CEO, in a statement.
For the first quarter, the company is forecasting adjusted earnings of 23 cents to 28 cents per share on sales in the range of $90 million to $94 million.
Analysts are expecting a profit of 18 cents per share on sales of $83.1 million.
Standard Microsystems posted a full-year loss of $8 million, or 36 cents per share, compared with a loss of $49.4 million, or $2.22 per share, a year earlier.
Revenue fell 5 percent to $307.8 million from $325.5 million.
The company’s shares rose $1.75, or 7.2 percent, to $25.90 in after-hours trading. The stock had closed up 16 cents at $24.15.
