Standard Microsystems beats 3Q expectations

admin Contributor
Font Size:

HAUPPAUGE, N.Y. (AP) — Chipmaker Standard Microsystems Corp. said Wednesday its third-quarter net profit fell 25 percent from a year ago, but the company posted higher revenues, citing improving business conditions and gains in market share.

Its results beat Wall Street expectations.

Net income in the quarter to Nov. 30 fell to $6.8 million, or 30 cents per share, from $9.1 million, or 41 cents per share, a year ago.

Revenue rose 3.5 percent to $87.2 million, up from $84.3 million a year earlier.

Excluding one-time items, earnings amounted to 34 cents per share, down from 39 cents a year ago.

Analysts polled by Thomson Reuters expected earnings of 22 cents per share on $84 million in revenue.

Chief Executive Christine King said revenue and profits exceeded expectations.

“This was the result of both improving conditions in the end markets we serve and market share gains,” she said. “PC sales were healthy but enterprise spending has yet to rebound.”

Standard Microsystems said it expected fourth-quarter revenue of $78 million to $82 million, above the average analyst forecast of $77 million.

Adjusted earnings per share in fourth quarter was seen between 10 cents and 12 cents and analysts had predicted, on average, 11 cents of earnings per share.

Standard Microsystems’ shares fell 62 cents, or 2.7 percent, to $22.45 in after-hours trading Wednesday, after closing up 19 cents at $23.07.