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Standard Microsystems Slips To Loss On Charges - Update

Chip maker Standard Microsystems Corp. (SMSC: Quote), Tuesday reported a slip to loss in the first quarter, hurt mainly by stock-based expenses, higher research costs, and a slight decline in revenues. Excluding items, the company posted a profit that topped Street estimates, as did revenues.

Standard Microsystems' results were largely impacted by stock-based expense of $28.3 million. This was due to fair market adjustments to stock appreciation rights based on an increase in its share price during the quarter.

Hauppauge, New York-based Standard Microsystems reported a first quarter net loss of $17 million or $0.76 per share, compared to net income of $6 million or $0.26 per share last year.

Excluding items, the company posted a profit of $12 million or $0.53 per share, compared to $11 million or $0.47 per share in the prior 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.

Standard Microsystems, which designs a range of silicon-based integrated circuits, reported quarterly revenue of $103 million, slightly down from $103.5 million last year. Analysts expected revenue of $100 million for the quarter.

Gross margin for the quarter improved to 54.5 percent, compared to 53.9 percent last year. On an adjusted basis, margin expanded to 58.4 percent from 56.4 percent.

SMSC closed Tuesday at $36.87, down 0.03%, on the Nasdaq.

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by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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Editors Pick
With disappointing earnings news generating some selling pressure, stocks have moved mostly lower in early trading on Friday. The major averages have slid firmly into negative territory after ending the previous session nearly flat. After reporting an unexpected drop in new orders for U.S. manufactured durable goods in the previous month, the Commerce Department released a report on Friday showing that durable goods orders rebounded by more than expected in the month of June. British economic growth remained high as expected in the second quarter as a robust expansion in the dominant service sector, and industry completely offset the slight weakness in the construction sector. With the second quarter expansion, GDP returned to its pre-crisis level. Gross domestic product grew 0.8 percent sequentially in the second quarter, the same rate as seen in the first quarter.
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