Freescale Semiconductor Inc. said its operating loss narrowed sharply in the first quarter as revenue increased on higher design wins in several of the chip vendor's key market segments.
Austin, Texas-based Freescale reported operating loss of $61 million for the quarter ended April 2 compared with operating loss of $351 million in the year-ago quarter. The company posted net loss for the recently ended quarter of $257 million versus net income of $1.8 billion in the first quarter of 2009 when it recorded a non-cash net gain of $2.3 billion on the extinguishment or modification of long-term debt.
Freescale's revenue in the 2010 first quarter rose 21 percent, to $1 billion from $840 million in the year-ago quarter and $951 million in the last quarter of 2009. Sales grew in all of the company's business segments, including microcontroller, which surged 51 percent year-over-year to $374 million from $248 million and up 12 percent from $333 million in the 2009 fourth quarter.
Sales in the RF, analog and sensor divisions rose to $245 million, up 33 percent, from $184 million in the year-ago quarter and 11 percent higher than the $221 million recorded in the December quarter. Networking and multimedia sales rose the least, up 12 percent to $255 million on a year-over-year basis and a 2 percent increase from $251 million in the last quarter of 2009.
"First quarter results continued to demonstrate solid growth in revenues and profitability for Freescale," Rich Beyer, chairman and CEO of Freescale said in a statement. "All of our businesses grew both sequentially and year over year, and we continue to solidify our embedded processing leadership with design wins in our automotive, networking, consumer and industrial markets."