SAN JOSE, Calif. Weak demand and inventory issues continue to rock the IC industry, as evidenced by the latest flurry of lackluster financial results from Atmel, Atheros, RF Micro Devices, Vitesse, and Zoran.
Atmel Corp. (San Jose) recorded a third-quarter net loss of $28.1 million, or 6 cents per share on sales of $413.2 million, compared to net earnings of $11.6 million or 2 cents per share on sales of $420.8 million the previous quarter and a net loss of $31.8 million, or 7 cents per share on sales of $335.2 million a year ago.
The company reported growth in its ASIC and RF businesses due to proprietary products including SmartCard ICs; however memory product revenue was flat because of pricing pressure.Atmel expects fourth-quarter revenue to be flat with the third quarter as those trends continue.
In the consumer IC market, Zoran Corp. (Sunnyvale, Calif.) recorded a net loss of $3.5 million, or 8 cents per share, on revenue of $119.7 million. The company lost $6.1 million, or 14 cents per share on revenue of $103.7 million the previous quarter and lost $54.5 million, or $1.53 per share on revenue of $67.4 million in the year-ago third quarter.
The third-quarter loss includes charges of $14.1 million related to the acquisition of Oak Technology and Emblaze Semiconductor.
On the communications front, RF Micro Devices Inc. (Greensboro, N.C.) said revenue for the quarter was $149.1 million, a decrease of 8.8 percent versus revenue of $163.5 million for the corresponding quarter of fiscal 2004, and a sequential decrease of 10.1 percent versus revenue of $165.8 million for the quarter ended June 30.
Net loss was $6.7 million, or minus $0.04 per diluted share, compared with net income of $10.6 million, or $0.05 per diluted share, for the quarter ended September 30, 2003. This compares sequentially to net income of $3.0 million, or $0.02 per diluted share, for the prior quarter ended June 30, 2004.
The company blamed the results on weakness in the market for GSM/GPRS cellular handsets in Asia, offset partially by strength among certain top-tier handset manufacturers.
RF Micro Devices currently expects sequential quarterly revenue in the range of $160 million to $165 million in the fiscal 2005 third quarter ending December 2004. Additionally, the company currently anticipates a quarterly net loss in the range of minus $0.02 to breakeven.
Meanwhile, Atheros Communications Inc. (Sunnyvale, Calif.), a developer of wireless LAN chipsets, said revenue in the third quarter of fiscal 2004 was $38.3 million, compared with $46.6 million in the second quarter of fiscal 2004.
The company's net income in the third quarter of fiscal 2004 was $767,000, or earnings of $0.01 per diluted share. This compares with net income of $5.5 million, or $0.10 per diluted share in the second quarter of fiscal 2004.
"We continued to increase our penetration into new customers and new markets in the third quarter," said Craig Barratt, president and CEO of Atheros, in a statement.
On the wireline side, meanwhile, Vitesse Semiconductor Corp. (Camarillo, Calif.) said revenues in the fourth quarter of fiscal 2004 were $52.0 million, compared to $42.8 million in the fourth quarter of fiscal 2003, and $60.4 million in the third quarter of fiscal 2004.
Net loss for the fourth quarter of fiscal 2004 was $3.1 million, or minus $0.01 loss per share, compared to net loss of $36.0 million, or minus $0.17 loss per share, in the fourth quarter of fiscal 2003 and net loss of $4.6 million, or minus $0.02 loss per share, in the third quarter of fiscal 2004.
Revenues for the year ended September 30, 2004 were $218.8 million, compared to $156.4 million in the year ended September 30, 2003. Net loss for the year ended September 30, 2004 was $33.1 million, or minus $0.15 loss per share, compared to net loss of $167.2 million, or minus $0.82 loss per share, for the year ended September 30, 2003.
Vitesse's President and CEO, Lou Tomasetta, painted a mixed picture. "Our fourth quarter results, while in line with the revised guidance that we issued earlier this month, were disappointing in relation to our plan," he said in a statement. "The end market for our storage products declined significantly during the quarter and is expected to be soft through the end of the calendar year."