Newport Beach-based networking chipmaker Mindspeed Technologies Inc. narrowed its loss in the quarter ended March 31.
Excluding stock compensation expenses, Mindspeed said its net loss was $4.4 million, compared to $6.1 million in the December quarter. Including expenses, Mindspeed lost $7.6 million, versus $11.3 million loss seen in the prior quarter.
The company posted a net loss of $7.1 million a year ago.
Revenue came in at $30.8 million for the quarter, down 11% from a year earlier. Sales were up 2% from Mindspeed’s previous quarter.
Wall Street on average expected revenue of about $33 million.
The loss was in line with the company’s guidance, which Mindspeed lowered a few weeks ago.
Mindspeed blamed its sluggish sales on its high performance analog chips. The company saw weak demand for the chips. It also said sales to a customer undergoing a buyout also tapered off. The company saw a 17% drop in sales to that customer, according to Mindspeed.
Still, Mindspeed said it saw an upturn in its voice over Internet protocol chips and its wide-area networking chips.
“We were encouraged by a number of positive indicators in our business this past quarter,” said Chief Executive Raouf Halim.
Mindspeed said it expects to return to profitability, lower its expenses and sees revenue growth of 6% to 10% in the current quarter.
Shares closed down nearly 3% on the news. They bounced back in afterhours trading, rising about 11%.
