PMC-Sierra ( PMCS) topped second-quarter sales estimates, fueled by revenue from two recently acquired businesses. However, the Santa Clara, Calif., telecommunications-chip maker reported a GAAP loss of $31.3 million or 15 cents a share, compared with income of $529,000, or flat EPS, in the year-ago period. Revenue came in at $118.8 million, 66% higher than the second quarter of 2005. Excluding a $20.5 million charge for R&D and a $9.9 million amortization of assets associated with the purchases of Passave and the Avago storage semiconductor business, the company earned 9 cents, or $19.4 million, in the quarter ended July 2. That compares with earnings of 4 cents in the year-ago quarter. On that basis, analysts polled by Thomson First Call were expecting earnings of 8 cents on sales of $113.6 million. Revenue included $8.8 million from the acquisition of Passave, which closed in May, and three months of revenue from Avago's business, compared with one month of revenue from that acquisition in the first quarter of 2006. CEO Bob Bailey, in addition to mentioning the integration and closing of the acquisitions, said that PMC's "enterprise storage business showed strength in the second quarter as the fibre channel transition from 2Gb/s to 4Gb/s has accelerated." In early July, PMC-Sierra announced that its head of finance,
Alan Krock, was resigning . Shares of the company lost 18 cents to $6.98 in recent after-hours trade. Shares closed the regular session down 13 cents to $6.85.