Semiconductor company Integrated Device Technology, Inc. (IDTI: Quote) reported Monday a profit for the third quarter that narrowed from last year, reflecting improved margins and as the year ago results were weighed down by loss from discontinued operations.
Adjusted earnings per share, which excludes items, matched analysts' expectations, while quarterly revenues missed their estimates.
"We delivered Q3 results within the range of our prior projections despite continued broad-based weakness in demand. Our bottom line results hit the midpoint of our prior projections due to reduced operating expenses and improved product mix," President and CEO Ted Tewksbury said in a statement.
The San Jose, California-based integrated circuit maker reported a net loss of $5.16 million or $0.04 per share for the third quarter, narrower than $6.19 million or $0.04 per share in the prior-year quarter.
Net loss from continuing operations for the quarter widened to $5.2 million or $0.04 per share from $0.90 million or $0.01 per share in the same period a year ago.
Excluding items, adjusted net income from continuing operations for the quarter was $6.2 million or $0.04 per share, compared to $8.53 million or $0.06 per share in the year-ago quarter.
On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.04 per share for the third quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter dropped to $115.15 million from $119.98 million in the same quarter last year, and missed six Wall Street analysts' consensus estimate of $119.04 million.
Gross profit margin for the quarter expanded 150 basis points to 54.7 percent from 53.2 percent, and adjusted gross profit margin also improved 330 basis points to 58.0 percent from last year's 54.7 percent.
"Although visibility into near term demand is limited, design win activity remains strong and we expect top line growth from new product categories to accelerate in the second half of this calendar year, led by wireless power and enterprise flash controllers," Tewksbury added.
The company added that improvement in its core business and continued operating expense reductions will enable it to achieve significant operating margin expansion in fiscal year 2014.
IDTI closed Monday's regular trading session at $7.67, down $0.08 or 1.16% on a volume of 1.64 million shares.
by RTT Staff Writer
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