Mindspeed Technologies Inc., the Newport Beach maker of networking chips, said it expects sales to come in higher than expected for the current quarter.
The company forecast revenue growth of 8% to 12% from the prior quarter, up from the 5% to 10% sequential gain it predicted in July.
Mindspeed had $28 million in sales for the quarter ended June 30. Revenue for the current quarter could come in at $29.9 million to $31 million. In the year-ago quarter, Mindspeed had $26.6 million in sales.
Before Tuesday’s announcement, analysts were expecting sales of $29.8 million for the current quarter.
Higher demand for Mindspeed’s chips “continued through July and August,” Chief Executive Raouf Halim said in a statement.
Shares of Mindspeed, which have slumped for the past two years, closed up 11% Tuesday. The company counts a market value of $220 million.
