Skyworks Narrows Loss, but Has Cautious Outlook - TheStreet

Skyworks Narrows Loss, but Has Cautious Outlook

The shares fall about 5% in the late session.
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(SWKS) - Get Report

, the chip company created by the merger of


(CNXT) - Get Report

wireless unit and Alpha Industries last year, posted a narrowed third-quarter loss on a 10% rise in combined company revenue.

The company was cautious about the current quarter, however, and the shares gave up about 5% on the Instinet late session compared to their 4 p.m. EDT close.

Using standard accounting, the company lost $6.2 million, or 6 cents a share, in the second quarter, compared to a loss of $181.9 million, or $1.33 a share, last year. The year-ago quarter included about $180 million of pretax charges and writedowns.

Pro forma operating income, which excludes amortization of intangible assets, consolidation costs and other items, was $200,000, or 3 cents a share, compared to $19 million last year. Analysts surveyed by Thomson First Call were predicting a pro forma loss of 4 cents a share in the latest quarter.

Revenue was $150.2 million in the latest quarter, up about 10% from the $137 million the combined companies posted in the year-ago period.

The shares were off about 46 cents, or 5%, to $8.30 on the Instinet late session.

Skyworks said it expects an inventory correction in Asia to continue through the current quarter, resulting in only a slight sequential rise in wireless revenue. The specifics of a supply agreement will result in assembly and test services revenue to fall to $9 million in the current quarter from $13 million in the third quarter. Expenses will also be higher than normal because of an extra week in the quarter, resulting in gross margin of about 35%.