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Microsemi Reports Big Sales, Profit Gains

Irvine-based chipmaker Microsemi reported big gains in first-quarter sales and profits that were in line with Wall Street expectations.

The company, which makes chips for military, aerospace, industrial and consumer uses, reported an adjusted profit of $38.4 million, up 79% from a year earlier and on target with the average expectation of analysts.

Sales came in at $207.5 million, up 76% from a year earlier and topping the $205.6 million analysts were expecting.

The results and Microsemi’s outlook for the current quarter generated little in afterhours trading, where the company’s shares were flat.

Microsemi has a market value of about $2 billion.

For the current quarter, Microsemi forecast an adjusted profit of $39.7 million to $41.3 million, which would be up about 60% from a year earlier.

Analysts on average expect a profit of $40.5 million for the current quarter.

Microsemi projected a second-quarter sales increase of 3% to 5% versus the first quarter.

That implies revenue of $214 million to $218 million, which would be up about 60% from a year earlier.

Microsemi is in the process of buying Camarillo-based AML Communications Inc., which makes microwave amplifiers for defense communications, unmanned aerial vehicles and other products.

It’s paying $28.3 million to buy AML.

The offer topped a $24.3 million bid by East Syracuse, N.Y.-based Anaren Inc. that was made in February and initially accepted by AML.

Microsemi typically buys several companies a year as part of a rollup strategy in what are known as high-reliability chips used in devices where failure is costly.

Last year, the company made its biggest deal yet with a $430 million buy of Mountain View’s Actel Corp.

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