soundly beat third-quarter earnings expectations, but the company issued lower-than-expected revenue guidance and said it plays to lay off 1,000 people in the quarter now under way in a bid to reduce expenses.
The Austin, Texas-based chipmaker, which spun off from
last summer, swung to a profit of $57 million for the quarter ended Oct. 2, up from a loss of $106 million a year ago.
Per-share profit amounted to 15 cents for the quarter ending in October.
Excluding spinoff-related expenses of $19 million, EPS would have been 19 cents.
Third-quarter sales amounted to $1.43 billion, up from $1.23 billion a year ago. On a sequential basis, revenue was down slightly from the prior quarter's $1.46 billion.
Gross margins rose to 39%, up from 30.3% a year ago and 38.4% in the prior quarter.
Wall Street analysts were looking for 7 cents in earnings on $1.42 billion in sales.
Freescale said the layoff of 1,000 people would result in restructuring charges of about $65 million or 13 cents a share in the fourth quarter. The downsizing marks an effort to lower expenses, the company said.
It will also record more spinoff-related expenses of $25 million to $30 million, or 5 cents to 6 cents a share, in the fourth quarter.
Freescale guided for fourth-quarter revenue of $1.4 billion to $1.45 billion, below the consensus estimate for $1.48 billion for the period. Gross margins should clock in at 38% to 39%, the company advised.
In regular Tuesday trading, FSL closed up 35 cents or 2.4% to $14.75.