PMC-Sierra Posts Loss; Stock Down - Update

(RTTNews) - Semiconductor company PMC-Sierra Inc. (PMCS), Monday posted a sharply wider loss for the second quarter, hurt by a seven percent drop in revenues amid muted business conditions. Results also reflect amortization and other charges.

Excluding items, the company reported a profit that matched Wall Street estimates, while revenues missed expectations. Shares of the company slid 7 percent in after-hours trade on the Nasdaq.

"Our second quarter results were in line with our outlook despite the muted environment," said CEO Greg Lang.

Lang said the company's recent acquisition of IDT's PCI Express flash controller business augurs well for growth in the enterprise solid-state drive market.

PMC-Sierra, based in Sunnyvale, California, posted a quarterly net loss of $4.2 million or $0.02 per share, compared with net loss of $103 thousand or breakeven per share a year ago.

Results for the recent quarter include $6 million stock-based compensation expense, $10.8 million of amortization charges, among other items. The prior-year included stock-based compensation expense of $7 million and amortization charges of $11.6 million.

Excluding items, adjusted earnings for the quarter were $16 million or $0.08 per share, compared with $21 million or $0.09 per share a year ago. Analysts polled by Thomson Reuters expected earnings of $0.08 per share. Analysts' estimates typically exclude special items.

Revenues for the quarter slid 7 percent to $128 million from $138 million last year. Analysts expected revenues of $130.39 million for the quarter.

Adjusted operating margin for the quarter was lower at 12 percent, compared with 14 percent a year ago. The company's stock closed Monday at $7.01, up 1.59%, on a volume of 3.6 million shares. In after hours, the stock dropped $0.52 or 7.42%.