June 22, 2011 / 8:44 PM / 7 years ago

UPDATE 2-Gennum Q2 profit drops on higher costs

* Q2 EPS $0.10 vs EPS $0.12 yr ago

* Revenue up 8.5 pct at $34.4 mln

* Declares dividend of C$0.035 (Adds details on Q2 results and Q3 forecast)

June 22 (Reuters) - Gennum Corp posted a lower second-quarter profit as the Canadian semiconductor company booked higher costs due to the acquisition of optic component maker Nanotech Semiconductor.

The company, which bought Nanotech for $34 million in April , said it expected a moderate impact on its third-quarter results due to lower demand from earthquake-hit Japan.

Gennum, which also has offices in the U.S., the UK, Mexico, Germany, Taiwan and India, said its plan to outsource its test and logistics segment is almost complete and expects to take a related charge of $3.3-$3.8 million in the third quarter.

Gennum said it will pay a quarterly dividend of 3.5 Canadian cents per share.

March-May net income was $3.6 million, compared with $4.1 million a year earlier.

Revenue rose about 9 percent to $34.4 million, helped mainly by the acquisition of Nanotech, which contributed $2.2 million.

Shares of the Burlington, Ontario-based company closed at C$7.63 on Wednesday on the Toronto Stock Exchange. (Reporting by Maneesha Tiwari in Bangalore; Editing by Maju Samuel)

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