PMC-Sierra tops Q3 profit target
By Myra P. Saefong, CBS.MarketWatch.com
Last Update: 5:38 PM ET Oct 12, 2000 NewsWatch
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CAMPBELL, Calif. (CBS.MW) -- Shares of PMC-Sierra climbed in after-hours trading Thursday after the broadband semiconductor provider reported a better-than-expected third-quarter profit amid a 140 percent year-over-year rise in revenue.
Ahead of the news, PMC-Sierra shares closed up 75 cents to $158.44. The stock was trading at $166.94 on the Island ECN Thursday evening.
After the market closed, PMC-Sierra (PMCS: news, msgs) posted a third-quarter pro forma profit of $56 million, or 31 cents per share, compared to $18.7 million, or 11 cents in the year-ago quarter.
Twenty-four analysts surveyed by First Call expected the company to earn 26 cents for the quarter, on average.
"PMC-Sierra experienced significant growth in the third-quarter despite a tight wafer supply situation," Bob Bailey, the company's chief executive, said in a statement.
"As the supply situation loosens, we hope to help our customers reduce their mounting backlogs," he said.
In a conference call late Thursday, Bailey said there are signs that global silicon wafer supplies are loosening, but it's "hard to say" how it will impact the company in the fourth quarter.
He did say, however, that the company expects to grow its revenue by "at least 15 percent" in the fourth quarter.
Total third-quarter revenue reached $198.1 million, up from $82.5 million a year ago.
The company's completed acquisitions of Malleable Technologies, Datum Telegraphic and Quantum Effect Devices during the third quarter compliments PMC-Sierra's broadband communications expertise and expands its ability to address larger market segments, Bailey said.
Including acquisition expenses and other one-time items, the company lost $29.7 million, or 18 cents per share for the third quarter. |
