64.3 F
Laguna Hills
Friday, May 24, 2024

Microsemi Defies Down Day on Wall Street

Irvine-based Microsemi Corp., a maker of chips for military, aerospace, consumer and industrial uses, saw its shares surge Friday, a day after reporting strong quarterly results and upping its outlook for the current quarter.

Microsemi’s shares closed up about 9% to a market value of nearly $1.9 billion.

The surge defied a slump on Wall Street, particularly among technology stocks after Cisco Systems Inc. on Thursday warned about results for the current quarter.

For the current quarter, Microsemi said it’s expecting to tally $180 million to $186 million in sales, up about 62% from a year earlier and topping analysts’ expectation of $152 million in sales.

The chipmaker is looking for adjusted profits of $30 million to $32 million, up about 42% and in line with Wall Street’s expectations.

Microsemi said its outlook includes results from its most recent deal, in which it scooped up Mountain View-based rival Actel Corp. for $430 million.

The deal is expected to close by the end of the month, according to Chief Executive Jim Peterson.

The rosy sales outlook comes on the heels of Microsemi’s results for the September quarter, which also beat average expectations.

Microsemi reported sales of $151 million up 38% from a year ago and surpassing analysts’ expectations of $147 million in sales.

Excluding charges for stock compensation, acquisitions and other one-time costs, Microsemi posted profits of $29 million, up 81% from a year ago and just ahead of analysts’ expectations of $28 million in profits.

Microsemi’s chips go into a wide variety of devices, including satellites, light emitting diode screens, weapons guidance systems and X-ray body scanners.

Want more from the best local business newspaper in the country?

Sign-up for our FREE Daily eNews update to get the latest Orange County news delivered right to your inbox!


Featured Articles


Related Articles