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UPDATE 2-SMSC Q1 beats Street, gives strong Q2 view
June 28, 2010 / 8:51 PM / 7 years ago

UPDATE 2-SMSC Q1 beats Street, gives strong Q2 view

* Q1 EPS $0.33 vs est $0.27

* Sees Q2 EPS $0.40-$0.44 vs est $0.37

* Sees Q2 rev $101-$104 mln vs est $100.3 mln

* Expects muted seasonality during H2FY11

(Adds details from conference call)

June 29 (Reuters) - Chipmaker Standard Microsystems Corp SMSC.O posted a better-than-expected quarterly profit, helped by sales in its automotive and analog product lines, and forecast a strong second quarter, sending shares up 6 percent.

For the first quarter, the company posted a profit of $627,000, or 3 cents a share, compared with a net loss of $9.2 million, or 42 cents a share, in the year-ago period.

Excluding items, the company earned 33 cents while analysts on average, according to Thomson Reuters I/B/E/S, were expecting 27 cents a share.

Revenue rose 56 percent to $97.2 million, edging past analysts’ estimate of $92.4 million.

Revenue from its automotive segment was up, helped by sales in luxury brands.

The company said it also saw strength in PC, PC peripheral and industrial sales during the first quarter. While there have been improvements, SMSC said it has not seen the expected significant increase in PC enterprise spending.

For the second quarter, the company expects revenues to increase about 4 percent to 7 percent sequentially, driven by growth across product segments. Channel inventory still remains relatively healthy, the company said.

The company said it expects seasonality to be muted during the second half of fiscal 2011.

SMSC also said it has not seen any significant impact on its revenue from the European credit crisis so far. The EMEA region, driven primarily by automotive sales, contributed 20 percent of its revenue during the first quarter, the company said.

However, the company voiced caution over economic concerns in Europe and said it could cause a moderation in sequential sales.

Shares of SMSC closed at $23.34 Monday on Nasdaq. They were trading at $24.70 after the bell. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Don Sebastian and Vyas Mohan)

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