Shares of Newport Beach’s Jazz Technologies Inc. jumped after the chipmaker upped its sales outlook for the second quarter on increased demand from customers.
The stock was up more than 10% in afterhours trading with a market value of about $75 million.
Jazz expects sales to be about $52 million, up from its previous range of $48 million to $50 million, the company said.
Analysts are looking for sales of about $49 million.
“We are seeing signs that the specialty semiconductor sector and Jazz, specifically, are emerging from the inventory correction,” said Gil Amelio, Jazz’s chief executive, referring to an oversupply of chips for the past year or so. “We expect for this momentum to continue in the second half of the year.”
The company is also making headway on a cost cutting program, which is expected to boost profits, according to Chief Financial Officer Paul Pittman.
Jazz is set to report results for the June quarter Aug. 6.
