MANHASSET, N.Y. Here are the winners and losers in terms of financial results for semiconductor suppliers on Thursday, July 27.
Winners: MIPS Technologies, Genesis Microchip
Losers: MagnaChip Semiconductor, Pixelworks
Processor and core supplier MIPS Technologies Inc. posted sales of $18.3 million in its fourth fiscal 2006 quarter ended June 30, up 5 percent over third quarter revenue of $17.5 million, and up 28 percent from $14.3 million in the year-ago fourth fiscal quarter.
Revenue from royalties was $10.4 million, up 11 percent sequentially and up 47 percent from $7.1 million a year ago.
Fourth fiscal 2007 quarter net earnings were $4.5 million, or 10 cents per share compared with net income of $2.2 million or 5 cents per share the previous quarter and $4.2 million or 9 cents per share the fourth quarter of 2005.
For fiscal 2006, total sales were $64.1 million, up 5 percent from $61.2 million in fiscal 2005. Fiscal 2006 GAAP net income was $5.8 million or 13 cents per share, compared with $14.9 million or 33 cents per share in fiscal 2005.
For the first fiscal 2007 quarter ended June 30, Genesis Microchip Inc. (San Jose, Calif.) posted sales of $55.9 million, compared with $60.9 million for the previous quarter. GAAP net income was $1.4 million or 4 cents per diluted share, compared with a net loss of $0.3 million or 1cent per share the previous quarter.
GAAP gross margin was 40.5 percent, down from 41.4 percent the previous quarter.
"Our first quarter results were in-line with our expectations," said Elie Antoun, president and CEO of Genesis Microchip. "Looking to our second fiscal quarter, I am pleased that the ramp of our customers' TV designs into production and the growing end-market demand for flat-panel TVs are expected to drive strong growth in revenues and deliver solid improvement to our profitability."
For the second fiscal 2007 quarter ended September, Genesis expects sales of $67 million to $72 million, with GAAP gross margin of 42 to 44 percent.
South Korea-based MagnaChip Semiconductor reported sales of $197.6 million in its second quarter ended July 2, down from $236 million in the year-ago quarter.
The company posted a net loss of $132.1 million, including restructuring and impairment charges, compared to $22.2 million excluding special charges in the prior year's second quarter.
Gross margin also fell, to $20.3 million, from $60.4 million a year ago.
"This was a disappointing quarter due to pricing pressures seen across the entire industry, higher channel inventory levels and due to company-specific execution issues," said Sang Park, president and CEO of MagnaChip Semiconductor, in a statement.
MagnaChip expects third-quarter sales to fall 6 to 9 percent sequentially given inventory issues, with flat gross margin.
System-on-chip IC supplier Pixelworks Inc. (Tualatin, Ore.) posted second-quarter sales of $30.9 million, 16 percent down from $36.6 million in the first quarter, and a 25 percent down from $41.3 million in the second quarter of 2005. GAAP gross margin was 37.5 percent, up sequentially from 35.1 percent the first quarter but down from 39.2 percent a year ago.
The second quarter GAAP net loss was $145.6 million or $3.02 per diluted share including charges, compared to a net loss of $33.1 million or 69 cents per diluted share the first quarter and a net loss of $2.3 million or 5 cents per diluted share the second quarter of 2005.
Pixelworks attributed the second quarter decrease primarily to weakness in the European and China advanced television markets as the company transitioned to new product designs.
For the third quarter of 2006, Pixelworks expects a GAAP loss of 19 to 27 cents per share, based on sales of $33 to $35 million. GAAP gross profit margin is projected at 40 to 42 percent.