Newport Beach chipmaker Conexant Systems Inc. returned to profitability in the recently ended quarter, while Irvine’s Gateway Inc. logged its second straight quarter back in the black.
Gateway reported a net profit of $15 million for the third quarter, versus a charge-laden $59 million loss a year ago. In the second quarter, Gateway reported $17 million in profits, its first net profit in a while.
Sales were up 14% from a year earlier to $1 billion.
Gateway said it is “comfortable” with its prior projection of 2005 revenue of $3.9 billion to $4 billion and yearly profit of about $45 million.
The company’s shares were up more than 10% in afterhours trading.
Conexant, meanwhile, beat its own target of returning to profitability by year’s end by reporting net income of $50.6 million for the quarter ended Sept. 30.
A year ago, Conexant lost $31.5 million. Analysts were expecting Conexant to break even in the current quarter and estimated a loss of $9.5 million for the recently ended period.
Sales for the September quarter were up 9% from the prior quarter to $214.9 million and flat with a year earlier. Analysts were looking for $208 million in sales.
Conexant’s shares shot up more than 8% afterhours.
The results are the handiwork of Chief Executive Dwight Decker, who returned to the company last November to put together a turnaround plan to stem losses.
For the current quarter, Conexant said it expects $225 million in revenue, more than prior estimates of $218.2 million.
