* Q3 EPS $0.23 vs breakeven/shr year ago
* Q3 revenue up 14 pct
* Sees Q4 adj EPS $0.01-$0.03 vs est $0.05
* Sees Q4 rev $51mln-$55 mln
Jan 27 (Reuters) - Canadian chipmaker Zarlink Semiconductor Inc ZL.TO posted a higher quarterly profit, helped by the sale of a campus in Sweden, but forecast fourth-quarter results below market estimates.
The company, whose customers include Alcatel-Lucent ALUA.PA, Nokia-Siemens [NSN.UL], Huawei [HWT.UL], Cisco (CSCO.O) and Juniper Networks (JNPR.N), expects to earn 1-3 cents a share, excluding potential foreign exchange impacts. It sees revenue of $51-55 million.
Analysts on average were forecasting earnings of 5 cents a share, on revenue of $59.2 million, according to Thomson Reuters I/B/E/S.
“As customer order patterns and product lead times stabilize, opening backlog is beginning to return to traditional levels and we anticipate our turns business for orders shipped and received in the quarter will increase,” Chief Executive Kirk Mandy said in a statement.
In the third quarter, excluding items, the company, which has been targeting markets in network timing, implanted medical devices and line circuit chips, earned 4 cents a share.
Analysts on average expected earnings of 4 cents a share, on revenue of $57.57 million.
“Strong customer design activity for our new timing, line circuit and medical products is supporting our long-term growth objectives and offsetting the expected declines in our legacy business,” CEO Mandy said.
“In the coming quarters, we anticipate that our design wins, market share gains and new growth opportunities will translate into clear top-line improvements.”
October-December net income was $34.6 million, or 23 cents a share, compared with $631,000, or breakeven per share, a year ago.
Included in the company’s third-quarter results was a $14.1 million gain related to the sale of its campus in Sweden, along with a $17.5 million reduction in valuation allowance related to deferred tax assets in Canada. The Ottawa-based mixed-signal chipmaker’s revenue rose 14 percent to $56.9 million.
Mixed-signal chips combine both analog and digital circuits on a single unit.
Shares of the company were closed at C$1.94 Thursday on the Toronto Stock Exchange. They touched a high of C$1.97 earlier in the day. (Reporting by Isheeta Sanghi in Bangalore; Editing by Jarshad Kakkrakandy) ((email@example.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: firstname.lastname@example.org))