TORONTO (Reuters) - Zarlink Semiconductor Inc ZL.TO swung to a first-quarter profit on Wednesday as revenue almost doubled due to the company’s acquisition of telecommunications semiconductor maker Legerity Holdings.
Zarlink said it earned $1.1 million, or nil per share, in the three months ended June 27. That was up from a loss of $5 million, or 5 cents a share, in the same period a year earlier.
Revenue shot up to $60.5 million from $30.6 million a year earlier as sales from the company’s communications products group — its biggest unit — rose to $39.1 million from $14.9 million. Legerity, which Ottawa-based Zarlink bought last year for $134.5 million, accounted $23.2 million of that.
Zarlink has been engaged in a very public spat with a group of dissident shareholders who think the company’s performance under the leadership of Chief Executive Kirk Mandy has been “disastrous.”
The dissidents say they deserve representation on the company’s board, while management has urged shareholders to back the company.
For the upcoming second quarter, Zarlink said it expects revenue of between $61 million and $63 million. Excluding costs related to the fight with the dissidents and any impact of foreign exchange, it said it sees earnings at between 1 to 3 cents a share.
The company’s stock fell 3 Canadian cents to 83 Canadian cents on the Toronto Stock Exchange on Wednesday morning.
Reporting by Wojtek Dabrowski; editing by Peter Galloway