Updated from April 15 Specialty chipmaker PMC-Sierra ( PMCS), which
preannounced strong first-quarter results last month, still beat earnings and revenue expectations after the bell Thursday. Still, shares of PMC-Sierra closed lower Friday by 98 cents, or 5.9%, to $14.89. Under generally accepted accounting principles, the Santa Clara, Calif., company reported net income of $16.8 million, or 9 cents a share, in the first quarter, which ended March 28. That compared with a net loss of $11.5 million, or 7 cents a share, in the same period a year earlier. Excluding charges and an $8.6 million gain on an investment sale, the company said non-GAAP income totaled $10.8 million, or 6 cents a share. That reversed a net loss of $6.9 million, or 4 cents a share, in the year-ago period and beat the latest consensus estimate from Thomson First Call by 2 cents. Revenue totaled $78.7 million, up 42.1% from a year ago and 11.5% sequentially. It slightly exceeded the Thomson First Call estimate of $78.4 million. Last month, PMC-Sierra said its first-quarter revenue would be above the midpoint of its previously established range of $77 million to $79 million, or 10% to 12% higher on a sequential basis. The company also said its March quarter book-to-bill ratio already exceeds 1.0, indicating rising orders. PMC-Sierra management said in a postclose call that the company expects second-quarter revenue to range from $83 million and $85 million, representing a 5% to 8% sequential increase. Without giving specific earnings guidance, PMCS expects its gross margin to remain constant at about 70%, although operating expenses will be slightly higher. Analyst estimates pegged second-quarter earnings at 5 cents a share on $83.9 million in revenue.