SANTA CLARA, Calif.-Chipmaker PMC-Sierra Inc.’s first-quarter 2001 results are drastically lower than its fourth-quarter 2000 results, but in line with its recently revised revenue and earnings expectations.
The company reported net revenues of $119.9 million, representing a decline of 48 percent compared to the previous quarter. Pro forma net income for the first quarter 2001 was 2 cents per share (diluted) or $4.4 million, down from $62.5 million in the fourth quarter of 2000.
When including amortization of goodwill, deferred stock compensation, gain on sale of investments, a $19.9 million restructuring charge, and a $2.1 million provision for inventory write-downs in its pro forma income, PMC-Sierra said it actually took a net loss of $63.5 million, or 38 cents per share, for the quarter.
Despite the disheartening news, the company’s stock was up 25.45 percent, trading at $41.40 per share, at market close on Thursday following the release.
