Mindspeed, UIE Shares UpFriday, August 3, 2012
Shares of Newport Beach-based Mindspeed Technologies Inc. and Cypress-based Universal Electronics Inc. surged Friday in one of the strongest trading days in months.
Investors sent shares of Mindspeed up more than 11% to a market value of about $104 million, while UIE shares jumped more than 17.5% to a market value of about $219 million.
UIE makes electronic games and remote controls.
The gains far outpaced the Nasdaq, which is up 2.18% in early afternoon trading on the heels of two government economic reports that beat expectations.
Data showed the U.S. added 163,000 jobs in July, above the 100,000 forecast by economists. Unemployment inched up to 8.3%, up from 8.2% in June, as more workers entered the market.
The Institute for Supply Management’s index of non-manufacturing sectors in the U.S. rose to 52.6 in July, up from 52.1 in June.
Any number above 50 indicates expansion.
Mindspeed and UEI didn’t see any material changes in operations, upgrades or design wins on Friday to cause the spike, so they may have been boosted by the overall gains in the market.
UEI on Thursday posted second quarter earnings of $6.2 million, narrowly beating Wall Street expectations, and revenue of $116 million, in line with estimates.
On July 24, Mindspeed posted mixed results for the June quarter.
The company posted revenue of $35.5 million, down 71% from a year earlier and in line with Wall Street expectations.
It reported a loss of nearly $5 million in the recently ended quarter, compared with an adjusted profit of $2.5 million a year ago.
Analysts on average had forecast a loss in the June quarter of $6.1 million.
The company plans to cut more than 80 jobs as part of a restructuring plan to lower costs, Chief Executive Raouf Halim said during a conference call with analysts.