Irvine-based Microsemi Corp., a maker of chips for military, security, aerospace and industrial uses, on Thursday gave an outlook for the current quarter that topped what Wall Street had been expecting.
For the three months through September, Microsemi said it’s looking for sales of $146 million to $148 million, beating analysts’ average expectation of $140 million in sales.
It’s expecting to report adjusted profits of $27 million to $29 million, just ahead of analysts’ expectation of $27 million in profits.
The rosier outlook comes on the heels of Microsemi’s June quarter results, which also trounced Street views.
For the three months through June 27, Microsemi saw $136 million in sales, up 27% from the same period a year earlier and beating analysts’ expectation of $130 million in sales.
Excluding charges for acquisitions, restructuring, write-downs on assets and other one-time costs, the company tallied $25 million in profits, up 92% from the year-ago quarter and just ahead of analysts’ expected $24 million in profits.
Microsemi said it’s starting to see better profit margins after it closed a plant in Scottsdale this year.
The plant produces chips that regulate electrical power in computer products, telecommunication gear, medical devices and military and aerospace products.
Microsemi has been slowly moving the work done in Scottsdale to other plants it operates.
“Our gross margin showed significant improvement which includes an initial contribution from our Scottsdale transition,” Chief Executive Jim Peterson said in a statement. “This is a good indicator of things to come, with continued profitability improvement from our core business and further contribution from our Scottsdale facility.”
Microsemi’s shares were flat in afterhours trading on a recent market value of $1.3 billion.
