Microsemi posts sharp jump in 3rd-quarter profit boosted by a tax gain and higher revenue

Microsemi posts sharp jump in 3Q profit

IRVINE, Calif. — Chip maker Microsemi Corp. said Thursday its fiscal third-quarter profit quadrupled, boosted by a tax gain and higher revenue as more businesses ramped up technology spending.

For the three months ended June 27, the company earned $33 million, or 40 cents per share, up from a profit of $7.8 million, or 10 cents per share, in the same period a year earlier. Excluding one-time items, adjusted earnings totaled $24.7 million, or 30 cents per share, in the latest quarter.

Revenue rose 15 percent to $136 million from $118.2 million.

Analysts, on average, were expecting a profit of 29 cents per share on revenue of $130.3 million, according to a poll by Thomson Reuters.

“We are extremely pleased with our third-quarter results with meaningful contributions from multiple product lines that should continue to strengthen over the next several quarters,” said James J. Peterson, president and CEO, in a statement.

For the current quarter, Microsemi expects a profit of 33 cents to 35 cents per share, excluding items. It expects revenue to grow by 7 percent to 9 percent sequentially.

Analysts are expecting a profit of 33 cents per share on revenue of $140 million — an increase of just 3 percent — for the fourth quarter.

Shares rose 27 cents to close at $15.36.