Standard Microsystems Corp. (SMSC: Quote), which is to be acquired by Microchip Technology Inc. (MCHP), Tuesday posted a loss for the first quarter, compared to a profit last year, hurt mainly by one-time charges related to stock-based compensation and acquisition expenses.
However, adjusted earnings for the quarter improved from last year, and topped analysts' estimates, helped mainly by stronger gross margins.
The Hauppauge, New York-based company's net loss for the quarter was $17.2 million or $0.76 per share, compared to net income of $6.2 million or $0.26 per share last year.
For the quarter, the company reported stock-based compensation expense of $28.3 million, as well as $4.0 million in merger and acquisitions related expenses.
On an adjusted basis, net income for the quarter improved to $12.2 million or $0.53 per share from $11.0 million or $0.47 per share last year. On average, four analysts polled by Thomson Reuters expected earnings of $0.33 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter dropped to $103.1 million from $103.5 million last year. Analysts estimated revenues of $100.0 million for the quarter.
Gross margin for the quarter advanced to 54.5 percent from 53.9 percent in the same prior year period.
In early-May, Microchip Technology, a provider of microcontroller, analog and Flash-IP solutions, agreed to buy Standard Microsystems for a total equity value of about $939 million. Microchip aims to expand its smart connectivity solutions for embedded markets with this deal.
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by RTT Staff Writer
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