Freescale Tops Forecasts

Profit more than doubles on sales gains across all segments.
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Freescale Semiconductor's

(FSL)

first-quarter profit more than doubled, exceeding Wall Street's projection, amid sales gains across all of its segments.

The Austin, Texas-based chip outfit posted first-quarter earnings of $212 million, or 50 cents a share, up from $85 million, or 20 cents a share, a year earlier.

The latest quarter's results included a 2-cent-a-share gain from an accounting change, as well as 4 cents in costs from stock-option expenses. Analysts polled by Thomson First Call projected earnings of 39 cents a share, including stock options.

Freescale's revenue rose to $1.53 billion from $1.44 billion last year. In January, the company forecast first-quarter revenue of $1.435 billion to $1.535 billion; Wall Street anticipated a top line of $1.49 billion.

The company, the former chip division of

Motorola

(MOT)

, reported 11% revenue growth for its biggest division, transportation and standard products. Sales in the segment rose to $653 million from $646 million a year earlier.

Meanwhile, Freescale's networking and computing systems division saw sales rise to $351 million from $349 million. Sales in the wireless and mobile solutions division jumped 19% to $506 million from $427 million.

For the second quarter, Freescale forecast revenue of $1.50 billion to $1.60 billion, in line with Wall Street's prediction of $1.52 billion. The company expects gross margins to be slightly up from margins in the first quarter, which came in at 45.3%.