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Thursday, Mar 28, 2024
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Earnings: Software Outguns Chips for Local Pair

Software outgunned chips on the earnings front for a couple of Orange County-based technology companies.

Revenue from services helped Costa Mesa-based software maker FileNet Corp. post a decent rise in sales and a big jump in profit in the fourth quarter.

FileNet, which makes software that manages companies’ files, records and databases, said operating profit rose 44% to $10.1 million in the quarter ended Dec. 31, on sales of $107.5 million.

Software sales were flat while FileNet’s revenue from services rose 12%. The company said it expects to benefit from stricter compliance rules facing public companies in the wake of Sarbanes-Oxley accounting reform.

Meanwhile, Newport Beach-based chipmaker Mindspeed Technologies Inc. said it was pleased that it posted relatively flat sales for the quarter ending Dec. 31.

“We maintained flat revenue sequentially despite an ongoing industrywide inventory correction,” said Mindspeed Chief Executive Raouf Halim.

Mindspeed, which makes chips for communications networks, reported an operating loss of $11.9 million in the quarter, better than a loss of $13.8 million a year earlier. Sales were down 2% to $26.3 million but in line with the September quarter.

Expectations for the coming quarter are slightly better.

“While visibility remains limited, we expect to benefit as customers continue to work down their inventories, and revenues from design wins continue to ramp in key markets,” Halim said.

Still, it’s not going to be a blockbuster quarter: “We expect (improvement) to be partially offset by traditionally weak capital spending in the March quarter,” he said.

Overall, Mindspeed is looking for flat to 5% growth in sales, with its operating loss narrowing by about 13%.

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