Shares of Newport Beach-based chipmaker Mindspeed Technologies Inc., rose Monday after the company posted a sales outlook for the current quarter that surpassed Wall Street’s expectations.
Investors sent shares up 2% in afterhours New York trading on a recent market value of $186 million.
For the current quarter, Mindspeed said it expects sales of $38.9 million to $40.3 million, up around 35% from a year earlier and topping analysts’ expectations of $37 million in revenue.
It didn’t give a profit outlook. Analysts, on average, are expecting profits of $1.4 million.
The improved sales outlook comes on the heels of Mindspeed’s quarterly results for the three months through Jan. 1.
Mindspeed reported sales of $37 million, up 34% from the same period a year earlier and in line with analysts’ expectations.
Excluding charges for stock compensation, severance pay, write-downs on assets and other costs, the company saw profits of $2 million, up from a loss of $6 million in a year earlier and just ahead of estimates.
“We believe that we can continue to deliver increasing leverage from our business model, as we believe we are well positioned in several exciting growth product cycles and are comfortable with maintaining operating expenses at their current levels for the remainder of this fiscal year,” Chief Executive Raouf Halim said.
Mindspeed makes chips for networking and spun off from Newport Beach chipmaker Conexant Systems Inc. in 2003.
The maker of chips for routers, switches, gateways and other gear is expected to move its headquarters to Aliso Viejo later this year.
Mindspeed’s chips are used in wide-area networks used to link different corporate offices as well as networks that span parts of cities. The company also makes chips used in devices that allow telephone calls over Internet lines.
