PMC-Sierra Inc. improved its financial performance in the first quarter, exceeding analysts' forecast even as it continues to cut costs and explore ways to diversify its product lines to return to profitability.
The networking IC supplier's net loss fell to $11.5 million, or 7 cents a share, in the three months ended March 30, from $13.7 million, or 8 cents a share, in the first quarter of 2002, while revenue rose 8%, to $55.5 million from $51.4 million.
Analysts estimated the company's first quarter revenue would be approximately $53 million while pro forma results, or net loss exceeding special charge, would be 6 cents a share, which the company beat by 2 cents.
"In the past quarter, we continued to improve our operating cost structure and introduced an important new Storage Systems product line," said Bob Bailey, president and chief executive of PMC-Sierra, Santa Clara, Calif., in a statement. "Despite a difficult environment, we are executing on our strategy of product diversification and continued technology leadership."
The market remains challenging for PMC-Sierra, however, along with other suppliers and OEMs in the networking equipment market.
In the latest quarter, the company took a $6.6 million restructuring charge in connection with certain cost-cutting actions.
PMC-Sierra has also indicated it will explore sales opportunities in other markets and in the just-ended quarter expanded its MIPS processor product family.