Newport Beach-based chipmaker Mindspeed Technologies Inc. on Monday reported higher quarterly sales that topped Wall Street expectations while matching what analysts were looking for on profits.
Mindspeed, which makes networking chips, reported sales of $40.2 million for the three months through April 2, up 53% from a year earlier, excluding year-ago revenue from patents that were sold.
Revenue came in ahead of the $39.7 million analysts expected on average.
In January, Mindspeed upped its outlook for the recently ended quarter.
The company reported net income of $3.1 million, matching what Wall Street expected and reversing a loss of $14.8 million a year earlier.
Chief Executive Raouf Halim called it a quarter of “excellent execution.”
Mindspeed’s seen more business from networking gear makers in Asia that buy its chips to convert phone calls to digital signals so they can be sent over fiber-optic lines.
Sales to China make up about half of Mindspeed’s revenue. Its biggest customers are large Chinese networking companies, including China Unicom Ltd. and Huawei Technologies Co., as well as Japan’s Nippon Telegraph and Telephone Corp.
For the current quarter, Mindspeed said it expect sales of $42.3 million to $43.9 million, which would be up 5% to 9% from a year earlier.
Analysts had been forecasting sales of $40.8 million for the current quarter.
Mindspeed didn’t give a net income forecast but said it expects a gross profit margin of 64%, on par with that in for the recently ended quarter.
The company, which spun off from Newport Beach chipmaker Conexant Systems Inc. in 2003, saw its shares rise about 4% in afterhours trading on a market value of about $260 million.
