MANHASSET, N.Y. Microprocessor supplier Zilog Inc. reported a net loss of $4.8 million, or 29 cents per share on sales of $20.5 million in the third quarter, compared with a loss of $2.0 million, or 12 cents per share on sales of $22.8 million in the year-ago quarter and $6.1 million, or 38 cents per share on sales of $20.6 million the previous quarter.
Zilog (San Jose) reported third-quarter gross margin of 40 percent, down from 42 percent from the previous quarter and 46 percent from the year-ago quarter.
Third-quarter 2005 results included charges of $0.7 million, comprised primarily of severance costs related to the transfer of certain corporate and operating activities from the U.S. to Manila, Philippines. These transfer activities are generally scheduled to be completed by the fourth quarter of this year.
"Net sales were in line with our guidance and I am happy to highlight that our embedded flash sales for the quarter increased to $2.0 million or a 56 percent sequential increase," said Jim Thorburn, Zilog's chairman and CEO, in a statement. "GAAP gross margin was 40% for the quarter which was lower than our guidance reflecting weaker sales in our universal remote control business."
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