WASHINGTON (dpa-AFX) - Semiconductor company PMC-Sierra Inc. (PMCS), Thursday reported a lower fourth-quarter profit, hurt by a fifteen percent decline in revenues on 'headwinds in the macroeconomic environment,' as well as lower tax recovery.
Nevertheless, the company's earnings and revenues for the quarter came in ahead of Street estimates, sending its shares up eight percent in after-hours trade on the Nasdaq.
PMC offers a portfolio of semiconductor devices used in various applications of communications network infrastructure equipment to enable the transportation and storage of large quantities of digital data.
The Sunnyvale, California-based company reported fourth-quarter net income of $11 million or $0.05 per share, compared with $28.4 million or $0.12 per share last year.
Excluding items, adjusted earnings for the quarter were $25 million or $0.12 per share, compared with $29 million or $0.13 per share in the prior year. On average, 9 analysts polled by Thomson Reuters expected earnings of $0.10 per share for the quarter. Analysts' estimates typically exclude special items.
The company benefited from a tax recovery of $4 million during the quarter, compared with a recovery of $19 million last year.
Net revenues for the quarter slid to $129 million from $152.6 million a year ago. Analysts on consensus expected revenues of $126.50 million for the quarter.
PMC closed Thursday at $5.78, up 1.23%, on a volume of 2.7 million shares on the Nasdaq. In after hours, the stock further gained 7.96%.
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