) reported third-quarter 2013 net loss of $2.8 million or 9 cents
per share wider than at net loss of $1.5 million or 5 cents per
share in the year-ago quarter. The quarterly loss was also wider
than the Zacks Consensus Estimate of a loss of 8 cents
The widening loss year-over year was due to increase in
company's operating expenses in the reported
In addition the company reported adjusted net income
(excluding stock-based compensation expense and valuation
allowance and delta in interim period tax allocation) of $1.1
million, or 4 cents per share, against net income of $1.5
million, or 5 cents per share in the year-ago quarter.
Though the company disappointed on earnings, it reported
record quarterly revenues during the quarter. Revenues jumped
9.5% sequentially and 7.2% year over year to $26.6 million. The
quarterly revenues also exceeded the Zacks Consensus Estimate of
The growth in revenues was primarily aided by double-digit
growth in communications and server revenues.
Gross margins in the quarter fell 150 basis points (bps) to
63.2%, whereas operating expenses rose 18% to $19.9 million from
the year-earlier quarter. Operating loss in the reported quarter
was $3.1 million much wider than $0.8 million in the year-ago
As of Sep 30, 2013, the company's cash and cash equivalents
and marketable securities totaled $119.3 million, compared with
$121.3 million as of Dec 31, 2012.
Increased spending in mobile, the transition to cloud,
introduction of silicon photonics and the critical role of memory
and big data, are major driving factors in the demand for Inphi's
high-speed, mixed signal semiconductor products. The company
expects to benefit from these trends in the upcoming
Inphi's projected range for revenues in fourth-quarter fiscal
2013 is $28 million to $29.6 million, up 5%--11%
sequentially. Moreover, it expects net loss between $0.94
million to $1.52 million, or 3 cents-5 cents per share.
However, excluding stock-based compensation expense, the
company expects to report adjusted net income in the range of
$1.3 million to $1.76 million, or 4 cents-6 cents per share.
Inphi currently carries a Zacks Rank #3 (Hold). Some
better-placed stocks in the same industry are
Microchip Technology Inc.
NXP Semiconductors NV
). While Microchip and Supertex both carry a Zacks Rank #1
(Strong Buy), NXP Semiconductor holds a Rank #2 (Buy).
INPHI CORP (IPHI): Free Stock Analysis Report
MICROCHIP TECH (MCHP): Free Stock Analysis
NXP SEMICONDUCT (NXPI): Free Stock Analysis
SUPERTEX INC (SUPX): Free Stock Analysis
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