SAN JOSE--Chip makers continue to post strong gains for the fourth quarter of 2003, but many vendors are bracing for some seasonal weakness in the first period of 2004, especially Conexant, Intersil, LSI Logic, MoSys, and others.
For example, Conexant Systems Inc., a supplier of chips digital home information and entertainment networks, said first fiscal quarter 2004 revenues increased 23 percent over first fiscal quarter 2003 revenues of $144.2 million, and 8 percent over fourth fiscal quarter 2003 revenues of $164.7 million.
Presented on a GAAP basis, the net income for the first quarter of fiscal 2004 was $40.6 million, or $0.13 per diluted share, compared to a net loss of $4.8 million, or $0.02 per diluted share, in the first quarter of fiscal 2003, and a net income of $37.2 million, or $0.12 per diluted share, in the fourth fiscal quarter of 2003.
"Our second fiscal quarter is a seasonally weak period for most of the markets Conexant addresses, with typical revenue declines of approximately 5 to 10 percent," said Dwight W. Decker, Conexant chairman and chief executive officer, in a statement. "However, even from our higher-than-expected prior-quarter revenue base, continued strength in our growth initiatives is expected to drive a less-than-seasonal revenue decline of 3 to 5 percent."
Chip maker Intersil Corp. said net revenue was $136.1 million in the quarter, an increase of 4.2 percent from the third quarter of 2003. GAAP net income was $23.7 million, or $0.17 per diluted share of common stock, for the fourth quarter of 2003. This compares to a net loss of $2.6 million from continuing operations, or a $0.02 loss per diluted share for the fourth quarter of 2002.
For the total year, Intersil reported 2003 revenue of $507.7 million, a 21 percent increase from 2002. Earnings per share from continuing operations for 2003 was $0.41, compared to a net loss per share of $0.19 in 2002.
"We were very pleased with our performance during the fourth quarter," said Rich Beyer, Intersil's president and CEO, in a statement. "Sales from ongoing product groups grew over 4 percent from the third quarter and 24 percent year over year, driven by continued strength of our DVD-R products and improved demand for our broadbased standard analog products," he said.
"We now expect first quarter revenue of approximately $136-$138 million, despite the seasonal decline normally associated with the computing and consumer markets in the early part of the year. This would result in growth of nearly 20 percent over the first quarter of last year, driven by the increasing acceptance of our new products across all product areas. We expect first quarter gross margins to approach 57% and earnings per share to be $0.18 -$0.19," he added.
Meanwhile, ASIC supplier LSI Logic Corp. reported 2003 fourth quarter revenues of $463 million, a 3 percent increase compared to the $450 million reported in the third quarter of 2003, and a decline of 4 percent compared to the $480 million reported in the fourth quarter of 2002.
The 2003-fourth quarter net income was $8 million or 2 cents per diluted share. The 2003-third quarter net loss was $32 million, or minus 8 cents per diluted share. The company reported a net loss of $31 million, or minus 8 cents per diluted share, in the 2002-fourth quarter.
LSI Logic recorded 2003 revenues of $1.69 billion, a 7 percent decrease from the $1.82 billion in 2002. The 2003 net loss was $309 million, or minus 82 cents per diluted share, compared to the GAAP 2002 net loss of $292 million or 79 cents per diluted share.
"Strength in storage systems, storage components and communications more than offset the weakness in the video-game sector in Q4," said Wilfred Corrigan, LSI Logic chairman and chief executive, in a statement.
LSI Logic expects to report a $2-to-$3 million loss on sales of $445-to-$455 million in the first quarter of 2004.
Another communications-chip maker, Mindspeed Technologies, Inc., today announced revenues of $26.7 million for the first quarter of fiscal 2004, which ended December 31, 2003. Revenues increased 15 percent from fourth quarter fiscal 2003 revenues of $23.2 million, at the high end of the company's expectations set at the beginning of the quarter.
Presented on a GAAP basis, the net loss for the first quarter was $26.2 million, or $0.28 per share, compared to $32.2 million, or $0.35 per share last quarter.
Mindspeed expects fiscal 2004 second-quarter revenues to be up 10-15 percent sequentially yielding a revenue range of between $29.4 million and $30.8 million, the company's highest revenue level in ten quarters.
IP supplier Monolithic System Technology Inc. (MoSys) said revenue in the fourth quarter was $3.4 million compared to $7.9 million of net revenue for the same period a year ago.
The net loss for the quarter was $415,000, or a loss of $0.01 diluted earnings per share, compared to net income of $4.1 million, or $0.13 fully diluted earnings per share in the same period last year. The fourth quarter 2003 diluted earnings per share were computed using 30,704,000 shares.
"Our fourth quarter results were impacted by the schedule delays of new design projects by our customers," commented Fu-Chieh Hsu, CEO of MoSys, in a statement.