Standard Microsystems ( SMSC) posted an increase in first-quarter earnings, and the company issued second-quarter and full-year forecasts that would top Wall Street's expectations. The company earned $1.72 million, or 10 cents a share, in the first quarter, compared with $352,000, or 2 cents a share, a year ago. Shares of the Hauppauge, N.Y., fabless semiconductor company were up 5.8% to $16.14 in recent trading. Income from continuing operations was $1.9 million, or 11 cents a share, compared with $433,000, or 2 cents a share, in the year-ago quarter. Revenue was $42.7 million, up 26%, and in line with analysts' estimates of $42.04 million. Sales totaled $34 million in the first quarter last year. The company said research and development expenses for the quarter rose to $9.1 million from $6.9 million a year ago. The increase in operating expenses mainly reflects added costs related to Gain Technology Corp., which was acquired in June 2002. In the second quarter, the company expects income from continuing operations of 5 cents a share on revenue of $44 million to $45 million. Analysts expect sales of $43.5 million. Sales were $38.3 million in last year's second quarter and earnings were 2 cents a share. For the full fiscal year, Standard forecast that revenue will climb 15% from 2003's sales of $155.5 million. Income from continuing operations is expected to be between 24 cents and 28 cents a share, about 30% higher than the company's prior estimate. Analysts expect 4 cents a share in the second quarter and 21 cents a share for the year.