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.
by RTT Staff Writer
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