rose 3% after posting a third-quarter profit gain.
The Milpitas, Calif.-based company earned $37.7 million, or 27 cents a share, in the quarter, compared with $27.1 million, or 19 cents a share, a year ago. Adjusted for items, earnings were $46.9 million, or 33 cents a share in the most recent quarter. Analysts surveyed by Thomson First Call were expecting earnings of 32 cents a share in the most recent quarter.
Third-quarter revenue rose about 22% from a year ago to $192.9 million as against analysts' expectation of $194.52 million.
For the fourth quarter, the company expects to earn about 24 cents to 25 cents a share, or 31 cents to 32 cents a share after adjustments. Revenue is expected to be 3% to 5% lower than in the third quarter. Analysts are expecting earnings of 33 cents a share, on revenue of $201.58 million.
For the third quarter, gross margins rose 150 basis points to 57.5% from the previous year. Operating margins for the quarter were 22.2% compared with 18.6% in the same quarter last year.
"This was another successful quarter for the company," the company said. "Through a better mix of products and several initiatives to reduce manufacturing costs, gross margins are now within our target of 58% to 62%. Even more impressive, operating margins are now at the high end of our model of 27% to 30%."
Shares rose 64 cents to $24.93.
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