New products and diversification helped Microsemi Corp., Irvine, Calif., to report results that are in line with its original guidance and above the consensus estimate for its fiscal third quarter.
Revenue for the quarter ended July 1 was $60.1 million, down 6.3% from the same period last year. Revenue from continuing business for the quarter was $59.5 million, compared with $59.9 million in the third quarter of 2000.
Third quarter net income increased 57.5% to $4.4 million, or 30 cents per share diluted, up from $2.8 million, or 22 cents per share diluted, in the third quarter of last year. Sales from continuing business excludes sales from three units closed over the last nine months through consolidation and exiting low-margin business as part of the company's gross margin improvement program.
The company posted third quarter pro forma net income of 33 cents a share, beating analysts' consensus estimate by one cent.
"Our strong design win activity in new products in recent quarters, as well as diversification among markets we serve have been the main factors resulting in our continued sales strength at a time when others have been reporting significant declines," said James J. Peterson, president and chief executive, in a statement. "Based on current backlog and forecasts from customers, we are expecting our fourth quarter sales to again buck the current trend in an industry which has announced significant declines."
In the fourth quarter, the company expects sales to be flat compared with the third quarter, plus or minus 4%, or in a range from $57 million to $61 million.