MOUNTAIN VIEWS, Calif. -- TelCom Semiconductor Inc.'s busy Thursday included announcements of its sixth consecutive quarter of sequential revenue growth, an acquisition, and a new chief executive officer.
The communications IC company reported that revenue for the second quarter, ended June 30, was $20.0 million, a 44% increase over the same quarter of 1999, and a 16% sequential Increase.
Second quarter net income from operations was $4.6 million compared to $1.5 million for the second quarter of 1999. This excludes gains on the sale of shares in Cypress Semiconductor Corp., the equity basis loss on Silicon Aquarius Inc., and charges during the first quarter of 1999 associated with the closure of the company's wafer fab.
Net income from operations represented 23 cents per share or a 130% increase over the 10 cents per share for the same period last year.
"Entering the second half of the year we expect to continue to grow and improve the profitability of the business," said chief executive officer Phillip Drayer.
Mountain View-based TelCom also announced plans to acquire Mead Microelectronics, a privately-held Swiss company with expertise in the design and development of high-performance analog, mixed-signal, and short-range RF ICs.
The acquisition is expected to close by the end of July and the terms of the transaction were not disclosed.
"Adding Mead's talent and capabilities enhances our presence in the data converter and communication segments of the analog market," Drayer said. "This combination also allows us to significantly strengthen our position in Europe."
Finally, TelCom announced that company president Bob Gargus has been named to the position of CEO, effective immediately. Drayer will continue as chairman of the company and focus on business development activities.
Gargus joined TelCom in 1998 and served as vice president of finance and chief financial officer before being named president in December 1999. Gargus held several management and financial positions at Tandem Computers and Unisys Corp.