(In U.S. dollars unless noted)
TORONTO, Oct 22 (Reuters) - Zarlink Semiconductor Inc ZL.TO posted a quarterly profit that topped its forecasts on Wednesday and said cost-cutting and a focus on the telecom market should let it stay profitable.
The Canadian computer chip maker said it earned $7.2 million, or 5 cents a share, in the second quarter ended Sept. 26. That was up from a loss of $15.9 million, or 13 cents a share, a year earlier.
The results topped Zarlink’s own forecasts for a profit of between 1 and 3 cents a share.
Revenue jumped 25 percent to $61.8 million. The acquisition of Legerity Holdings, a telecom semiconductor maker that Zarlink bought last year, accounted for $24.6 million in revenue.
Zarlink said Internet-based voice, remote measurement and high-speed optical technologies were among the markets where it expects to see “continued” customer spending.
“The current global economic slowdown has created limited visibility for revenue in the third quarter and beyond,” Chief Executive Kirk Mandy said in a statement. “However, our focus on the above market opportunities and firm cost control should allow Zarlink to be profitable in the third quarter.”
Zarlink forecast third-quarter revenue of between $53 million and $58 million, “given current economic uncertainties.” Excluding any foreign exchange impact, the company said it saw earnings per share of between break-even and 2 cents.
The company released its results after markets closed. During the day, its shares rose 0.5 Canadian cents to close at 40 Canadian cents on the Toronto Stock Exchange.
$1=$1.25 Canadian Reporting by Wojtek Dabrowski; editing by Rob Wilson