Stanford Microdevices Inc. said its net income fell 52% in the second quarter, ended June 30, despite surging revenue and fatter gross profit margins.
The company, which began trading its shares publicly in May, said net income for the quarter fell to $118,000, or less than 1 cent per share, from $246,000, or 2 cents per share in the year-earlier quarter. Operating expenses took a toll on net income, ballooning to 59.2% of sales, from 37% in the year-ago quarter, while revenue jumped 74.6%, to $7.8 million from $4.5 million in the comparable quarter.
Sunnyvale, Calif.- based SMDI, attributed the swelling sales to a growing market for its products, a diversified product line, its expanded presence in U.S. and foreign markets, and its decision to reposition itself as a supplier of RF components.
"We continue to make strategic investments in people and infrastructure to support sustained growth," said Robert Van Buskirk, SMDI's president and chief executive, in a statement. "Overall, the transition of Stanford Microdevices to a broad-based supplier of standard and custom RF components for wireless and broadband wireline infrastructure equipment is proceeding on plan."
The company said its changing product and channel mix helped to boost gross margin to 57%, compared with 44% in the comparable quarter.
"We're pleased with the revenue growth and profitability of our first quarter as a public company," Van Buskirk said.