Newport Beach chipmaker Mindspeed Technologies Inc. has raised $8.8 million in a stock offering and plans to pay off debt with the proceeds.
The company sold 4.75 million shares at $2.05 each, raising $9.7 million in all before expenses.
Mindspeed’s networking chips help run wide area networks in cities and voice over Internet protocol devices that allow phone calls over Internet lines.
The company had a recent market value of $50 million.
Mindspeed plans to use the proceeds of the offering to pay off $10.5 million in debt due in November.
As of July 3, Mindspeed had about $15 million in long-term debt.
Late last month, Mindspeed surprised Wall Street by saying it’s set to turn a profit during the current quarter.
For the three months through September, the company said it expects to turn a profit but didn’t give specific figures.
The networking chipmaker has been mired in red ink for more than a year.
The company said it expects third quarter sales of about $33 million to $36 million, slightly ahead of analysts’ expectation of $33 million in revenue.
