SAN JOSE, Calif. Based on the financial results from a select group of chip makers, it will be a long and tough year in 2005.
The select group of IC makers AMCC, AMI, IR, Micrel, and Toshiba separately posted mixed-to-lackluster results in the quarter.
Toshiba Corp. (Tokyo) said that its electron device unit had sales of 1.3 trillion yen ($12.2 billion) for its fiscal year, up 2 percent from a year ago. Operating income in the unit was 92.5 billion yen ($860 million) for the fiscal year, down 24.5 percent a year ago.
Toshiba's group net profit surged to 46 billion yen ($435 million) for fiscal 2004. Sales rose 5 percent to 5.8 trillion yen ($55 billion) from the previous year.
The company predicts that its electron device business will grow by 7 percent in the current fiscal year, but operating income will drop by 17.5 percent due to price pressures in the market.
Power semiconductor specialist International Rectifier Corp. (El Segundo, Calif.) said net income increased $35.6 million, or $0.48 per share, for the March quarter, versus $26.7 million, or $0.39 per share, for the prior-year quarter and $39.5 million, or $0.55 per share, in the December 2004 quarter.
Revenues were $281.9 million in the March quarter compared to $275.4 million in the prior-year quarter. Revenues declined 6 percent from the December quarter, reflecting the planned discontinuation of low margin products and normal seasonal patterns in the consumer and information technology sectors.
In the June quarter, revenues are expected to remain at March levels, plus or minus 4 percent.
AMIS Holdings Inc., parent company of mix-signal chip specialist AMI Semiconductor, said first quarter revenue was $115.9 million, a decrease of 6 percent sequentially and 10 percent below the first quarter of last year.
The company reported a net loss for the first quarter of 2005 of $11.1 million, or $0.13 per share, compared to net income of $7.3 million, or $0.08 per diluted share for the fourth quarter of 2004 and net income of $13.5 million or $0.16 per diluted share in the first quarter of 2004.
"Market conditions were as difficult as expected in the first quarter," said Christine King, president and chief executive of AMI (Pocatello, Ida.), in a statement. "However we are encouraged by order strength we saw later in the quarter. Our six month backlog increased seven percent to $108 million in the first quarter, and we believe first quarter will represent the trough in our quarterly revenues for the year."
"We expect our second quarter 2005 revenue to be up two to five percent as compared to first quarter," said David Henry, senior vice president and chief financial officer.
Communications-chip maker Micrel Inc. (San Jose) said first quarter revenues were $60.7 million, a decrease of 1 percent over the year ago period and an increase of 2 percent from revenues in the fourth quarter of 2004, in spite of the seasonality that usually characterizes the first quarter.
First quarter 2005 net income was $6.6 million, or $0.07 per diluted share, an increase in net income of more than 40 percent from the year ago period and up 30 percent from the fourth quarter of 2004.
Based on current backlog levels and demand estimates, the company projects that second quarter 2005 revenues will increase sequentially by 2-to-7 percent.
Applied Micro Circuits Corp. (San Diego) said revenues for the fourth quarter of fiscal 2005 were $64.2 million up 5 percent sequentially from the $61.1 million reported in the third quarter of fiscal 2005 and up 36 percent year over year from the $47.4 million reported in the fourth quarter of fiscal 2004.
The net loss on a GAAP basis for the fourth quarter of fiscal 2005 was $5.3 million, compared with a net loss of $81.9 million in the prior period and a net loss of $2.1 million for the fourth quarter of fiscal 2004.