Globespan Inc. reported a net loss of $88.7 million in the second quarter ended June 30, despite a 705% year-over-year increase in revenue. This quarter's net loss of $1.42 per share compares with a loss of $5.8 million, or 15 cents per share, in the year-ago quarter.
Globespan said although its revenue surged to $75.9 million, from $9.4 million in the year-earlier quarter, lower average selling prices and recent acquisitions have weighed heavily on profits. The company's acquisition of T.sqware Inc. and iCompression Inc. also put a serious strain on operating expenses for the quarter.
Operating expenses ballooned 307%, to $34.3 million, from $8.4 million in the comparable quarter, while gross margin fell to 61.3% from 65.7%
The company said gross margin may continue its decline in upcoming quarters, due to pressures on average selling prices, changes in product offerings, and customer mix.
Globespan, Red Bank, N.J., is a provider of integrated circuit, software, and systems designs for DSL applications.