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Technology Stocks : PMC-Sierra (PMCS) - moderated -- Ignore unavailable to you. Want to Upgrade?

To: Barry Moss who wrote (438)	7/18/2002 5:51:12 PM
From: Proud_Infidel	Read Replies (2) \| Respond to of 469

PMC-Sierra reports its 2nd quarter loss narrows (Updates with analyst and CEO comments, prices) SANTA CLARA, Calif., July 18 (Reuters) - PMC-Sierra Inc. on Thursday (NasdaqNM:PMCS - News) reported a second-quarter loss that narrowed slightly from a year ago, suggesting the communications chipmaker had turned the corner in what has been a dismal market for semiconductor companies the last year and a half. Santa Clara, California-based PMC-Sierra said it had a loss before one-time items of $11.4 million, or 7 cents a share, compared with a year-ago loss before one-time items of $13.4 million, or 8 cents a share. Revenue fell to $54.5 million from $94.1 million a year earlier, but rose from $46.9 million in the first quarter. Analysts had forecast PMC-Sierra to post a loss of 8 cents a share, within a range of a loss of 7 cents to 8 cents, on revenue of $54.9 million, according to tracking firm Thomson First Call. "They are doing a good job on the cost side," said analyst Paul Brandeis of Needham & Co., adding that PMC-Sierra posted gains across its networking business lines. PMC-Sierra Chairman and Chief Executive Bob Bailey in a statement said the company benefited from newer products using PMC-Sierra chips entering trials. Shares of PMC-Sierra rose in after-market trade to $10.10, after closing down 22 cents, or 2 percent, at $9.80. PMC-Sierra's high-end chips are used in telecom and optical networking equipment. Demand for such equipment dropped sharply in the wake of the dot-com shakeout and amid the slow economy and a brutal and ongoing downturn in the telecommunications industry. When the company reported first-quarter results, its chief financial officer, John Sullivan, said investors could expect strong sequential growth off a modest base of revenues, adding that it could turn a profit when revenue returns to about $80 million a quarter. The company, which counts Applied Micro Circuits Corp. (NasdaqNM:AMCC - News), Broadcom Corp. (NasdaqNM:BRCM - News) and Vitesse Semiconductor Corp. (NasdaqNM:VTSS - News) as rivals, supplies Cisco Systems Inc. (NasdaqNM:CSCO - News), the top network gear maker, and Lucent Technologies Inc. (NYSE:LU - News), the struggling telecom equipment company. Analysts worry that as the telecom industry's problems weigh on equipment suppliers, communications chip suppliers will lag a slow recovery in the overall semiconductor industry, which has begun to emerge from a year of slumping sales. PMC shares have lost 63.2 percent of their value over the past 52 weeks, according to Thomson First Call.