HAUPPAUGE, N.Y. (AP) — Semiconductor maker Standard Microsystems Corp. on Tuesday reported lower net income for its fiscal second quarter as higher expenses offset an 8 percent revenue boost.
Its outlook for the current quarter also fell below Wall Street’s expectations and the company’s shares tumbled in after-hours trading.
Standard Microsystems posted net income of $11.9 million, or 51 cents a share, for the quarter ended Aug. 31, down from $12.9 million, or 57 cents a share, a year earlier.
After adjusting for one-time items like restructuring charges, the company said it earned 36 cents a share in the latest quarter. That missed analysts’ estimates by a penny, according to a FactSet survey.
Among higher expenses was a rise in research and development spending to $22.6 million from $19.8 million a year before. Its adjusted gross margin was 54.6 percent, down from 57.4 percent.
It reported revenue of $112.6 million, up from $104.1 million a year earlier, and in line with analysts’ estimates. The increase was largely due to the company’s May purchase of BridgeCo Inc. which sells software that enables music streaming to home theater systems, radios, wireless speakers and other equipment.
Standard Microsystems said it expects adjusted earnings per share of 30 cents to 37 cents in its fiscal third quarter, on revenue of $105 million to $110 million. Analysts had been expecting earnings of 44 cents a share on revenue of $116.4 million, according to FactSet.
“We expect modest sequential growth in consumer and automotive sales while PC and industrial sales are anticipated to decline,” CEO Christine King said in a statement. “For the second half of fiscal 2012, while computing and consumer demand is expected to be challenged, we anticipate continued growth in our automotive and wireless audio product sales.”
The company, based in Hauppauge, N.Y., makes chips for personal computers, smart phones and other consumer gadgets, as well as industrial and automotive computers.
Its shares were down $1.53, or 7.5 percent, to $18.99 in extended trading following the release of the earnings report. They had closed the regular session up $1.02, or 5.2 percent, at $20.52.