SAN JOSE -- Analog chip maker IMP Inc. here increased its profitability in the last fiscal quarter after staging a dramatic turnaround in 2001. The company this week reported a net profit of $17,000 in the fiscal quarter, ended Dec. 31, compared to a loss of $1.2 million in the period last year.
IMP said its sales sequentially declined 19% to $5.5 million in the last quarter compared to $6.8 million in the prior three-month period, ended Sept. 30, 2001. Sales were 41% lower than $9.3 million in the quarter a year ago. In the September quarter, IMP's net profit was $6,000.
The company's $17,000 profit was its the third consecutive quarterly income. IMP was saved from a cash shortfall last May when it received a capital infusion from a group of investors led by the company's management (see May 15 story).
"We are encouraged by the results," said Subbarao Pinamaneni, CEO, president and chairman of IMP. "We have and are continuing our efforts to reduce costs, which has included the reduction of IMP staff to 90 personnel as compared to 220 personnel three quarters ago. We continue to negotiate with our vendors to reduce cost in an effort to remain profitable despite lower revenues."
Profit for the last fiscal quarter, ended Dec. 31, includes a non-cash charge of $412,000 for the debt discount and beneficial conversion feature of the subordinated debenture issued to India's Teamasia Semiconductors Ltd., a privately held manufacturer of discrete devices. Teamasia uses IMP as a foundry. Excluding the charges, IMP said its profit in the last quarter would have been $429,000.