SUNNYVALE, Calif. -- Trident Microsystems Inc. here reported an increase in operating loss despite a 17% sequential increase in revenues to $30.2 million in the company's fiscal second quarter, ended Dec. 31, from $25.7 million in the prior period. The graphics chip set supplier's sales were 14% below $35.1 million in the quarter a year ago.
Trident Microsystems posted a loss of $3.3 million, or $0.25 per share, in the just-ended quarter vs. a net loss of $28.2 million in the prior quarter, ended Sept. 30. However, the company's prior loss included charges of $42.1 million for write-downs of investments and a tax benefit of $16 million. Excluding those items, the company had a loss of $2.2 million in the prior quarter.
"Although we had expected somewhat weak results given the economic climate, we are still disappointed with the increased operating loss in the December quarter," said Frank Lin, president and CEO of Trident. "In fact, the final numbers actually showed some revenue increase but gross profit was lower."
The chief executive officer blamed production problems in transitioning from discrete graphics devices to integrated graphics and core logic products. Details about those problems were not made available.
"Even though these problems have been resolved, we expect that revenue will be flat next quarter under current business conditions," said Lin, who added that the company is determined to overcome the setbacks with "aggressive development of new and advanced graphics products."