Thursday, Microsemi, Corp. (MSCC) reported a decline in first-quarter profit from the year ago on 13% lower net sales of analog and mixed-signal integrated circuits and semiconductors.
The semiconductor maker's first-quarter profit declined to $7.96 million or $0.10 per share from $13.20 million or $0.16 per share in the year-ago period. Microsemi's non-GAAP net income declined to $21.1 million from $28.7 million. Earnings per share fell to $0.26 from $0.35 in the prior-year period. On average, 11 analysts polled by Thomson Reuters expected EPS of $0.26 for the quarter.
GAAP results in the first quarter of 2010 included $3.7 million for transitional idle capacity and $1.1 million in restructuring, exceptional legal matters and other special charges. Also included in the first quarter were non-cash charges of $6.7 million related to stock based compensation and $3.9 million in amortization of acquisition-related intangibles.
Microsemi net sales fell 13.6% to $112.8 million from $130.6 million in the year-ago period; comparable to analyst revenue expectations of $112.42 million in the first-quarter.
Though cost of sales reduced to $60.56 million from $70.16 million, the decline in net sales brought down the gross margin to $52.26 million from $60.43 million in the year-earlier quarter.
The company's total operating expenses reduced to $41.79 million from $46.52 million due to lower selling, general and administrative or S,G&A costs and lower restructuring charges. S,G&A costs declined to $25.81 million from $30.60 million and restructuring charges fell to $0.29 million from $1.90 million in the year-ago period. This was partially offset by higher R&D costs of $11.80 million, compared to $10.76 million last year and higher amortization of intangible assets of $3.88 million from $3.24 million in the year-ago period.
Looking ahead, Microsemi expects second-quarter EPS in the range of $0.26 to $0.27. The company also expects second-quarter net sales to sequentially increase between 2% and 4%.
Analysts currently expect the company to post earnings of $0.27 per share, on revenues of $114.8 million a year earlier.
MSCC closed Thursday's regular trading session at $17.18, up $0.05 or 0.29%, on a volume of 1.50 million shares on the Nasdaq. In after-market trading MSCC shares fell $0.48 or 2.79% to $16.70.
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