SAN FRANCISCO Semiconductor suppliers Sigmatel Inc. and Pixelworks Inc. Tuesday (Oct. 25) reported third quarter results, with each company posting sequential and year-over-year revenue increases. Each company also reported a net loss for the quarter.
SigmaTel (Austin, Texas) said third quarter revenue of $74.4 million represented a 55 percent increase over the same period of 2004. Sequentially, SigmaTel's third quarter revenue increased by 7 percent over second quarter revenue, the company said.
Using generally accepted accounting principles (GAAP), SigmaTel incurred a net loss for the third quarter of $4.8 million, or 13 cents per diluted share. Sigmatel reported a net income of $17.3 million, or 46 cents per diluted share, in the third quarter of 2004 and a net income of $10.9 million, or 29 cents per diluted share, in the second quarter of this year.
Sigmatel said the GAAP loss was driven by acquisition related charges for in-process research and development costs of $11.4 million, as well as amortization of other intangible assets acquired totaling approximately $400,000. Third quarter results also include an income tax expense despite a pretax loss, due to the acquisition activity during the third quarter, the company said.
Sigmatel acquired Oasis Semiconductor in September for $82 million.
Sigmatel said it expects fourth quarter revenue to be between $81 million and $91 million with GAAP net income between $3.9 million and $6.1 million.
Pixelworks (Tualatin, Ore.) reported third quarter revenue of $46.8 million, up 13 percent from the$41.3 million that the company reported for the second quarter and up 6 percent from the $44 million it reported during the third quarter of 2004.
Pixelworks reported a GAAP third quarter net loss of $5.3 million, or 11 cents per share. Pixelworks reported a net income of $5.4 million during the same period of 2004 and a net loss of $2.3 million during the second quarter of this year
Pixelworks said it has restructured its workforce and eliminated 36 positions, resulting in one-time severance expenses of about $1 million in the fourth quarter. Pixelworks said it expects to incur additional costs over the next two quarters as it consolidates two Silicon Valley facilities into one.
For the fourth quarter, Pixelworks said it currently expects revenue of $45 million to $48 million and a net loss of 10 to 11 cents per share.