Mindspeed Shares Up on Q3 Earnings, Latest BuyMonday, July 25, 2011
Shares of Newport Beach’s Mindspeed Technologies Inc., a maker of networking chips, are up in afterhours trading Monday after the company reported adjusted profits and revenue in the June quarter that topped Wall Street estimates.
Investors sent shares up nearly 4% in extended trading to a market value of $248 million on the quarterly report and news that the company acquired a San Diego chip maker that specializes in baseband technology—the communications brains of mobile phones.
Revenue in the June quarter topped $42.2 million, up 10% from a year earlier.
Analysts had expected revenue of $41.9 million.
Adjusted profits hit $2.5 million, up from a $400,000 profit a year ago.
Analysts had expected adjusted profits of $1.67 million.
Mindspeed’s announcement that it had acquired substantially all of the assets of IPG Communications Inc. was made right after releasing its quarterly earnings Monday afternoon.
IPG’s technology reduces memory and complexity for systems-on-chip.
The buy adds to Mindspeed’s 3G and wireless baseband development efforts, and is expected to help the company increase next generation design wins, according to Thomas Medrek, senior vice president and general manager.
Financial terms of the deal were undisclosed and Mindspeed doesn’t project earnings to be affected by the transaction in the current quarter.
Mindspeed expects revenue in the September quarter to be flat or grow up to 4% in the range of $41 million to $43 million.
Analysts on average are expecting revenue between $43 million and $44.5 million.
The company did not provide guidance on profits.
Analysts on average are expecting a $2.6 million profit.