Austin, Texas-based chipmaker Freescale Semiconductor (NYSE:Â FSL)Â reported a deep drop in profits in the second quarter of 2012.
The company reported net sales of $1.03 billion and recorded a $34 million net loss or 14 cents per share for the period that ended June 29.
On a non-GAAP basis, the company earned a second-quarter profit of $17 million, or 7 cents per share. Last year during the same period, profits came in at $70 million, or 33 cents per share.
Gregg Lowe, the new CEO and president who took the helm of the company in June, highlighted the more positive news in the report. “The second quarter results showed sequential improvement, with 8% sales growth and contribution from our automotive, networking, consumer and industrial businesses,” said Lowe. “We also improved gross margin and added to our cash balance in the quarter.”
Freescale, which makes chips for the network and automotive industry, has been laboring under a heavy multi-billion-dollar debt load, resulting from its leveraged buyout in 2006. Its subsequent IPO in May 2011 which aimed to help pay off some of that debt, raised $782 million falling short of its $1 billion goal.
