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Aliso Viejo-based chipmaker Microsemi Corp. reported revenue and adjusted profits for the December quarter in line with Wall Street with estimates but provided a sales outlook for the current quarter below Wall Street expectations.
Investors sent Microsemi shares down in after-hours trading Thursday to a market value of about $2.5 billion, likely based on the projected revenue target miss, but the stock recovered in midday trading Friday to a market cap of about $2.6 billion.
The company posted record sales $303.6 million in the recently ended quarter, up 18.8% from a year earlier, in a report that came after hours today.
Net income hit $61.9 million, up 44.2% from a year ago.
The company also posted record operating cash flow of $66.9 million and free cash flow of $53.8 million in the recently ended quarter.
The Business Journal late last year reported that Microsemi entered its new fiscal year with a record backlog of contracts fueled by a resurgence in defense and security spending.
The company has carved out a niche developing timing and synchronization chip sets for the communications infrastructure market as it diversifies from its legacy of discrete power chips used by the defense and industrial sectors.
Microsemi projects sales for the current quarter to be down as much as 4.5% to $302.2 million. Analysts on average expect sales of about $309 million. Net income is projected between $60.8 million and $64.6 million. Wall Street is looking for net income of about $63.6 million.