MANHASSET, N.Y. Freescale Semiconductor Inc. reported net earnings of $85 million, or 20 cents per share, on sales of $1.44 billion in the first quarter of 2005, compared to $5 million, or 1 cent per share, on sales of $1.43 billion in the previous quarter.
In the previous quarter, Freescale (Austin, Texas) incurred pre-tax charges of $5 million related to its separation from Motorola, and $79 million for restructuring. Without these charges, Freescale's fourth-quarter earnings were $72 million, or 17 cents per share.
In the year-ago quarter, Freescale earned $106 million on sales of $1.4 billion.
Freescale reported gross margin of 40.2 percent, up from 36.0 percent the previous quarter and 36.3 percent a year ago, which the company attributed to a more profitable product mix, higher factory utilization, and improved operating efficiencies.
Last month, Freescale chairman and chief executive said at the Semico Summit the semiconductor industry would be in for a period of single-digit growth as pricing pressures and the shift from an IT-centered to consumer electronics-centered market continued.
For the second quarter, Freescale expects revenue of $1.38 to $1.47 billion and margins flat with the first quarter.