In what's become a rare spectacle among tech companies,
said it will post higher-than-expected revenues for the current quarter. The company, which makes semiconductors for use in flat-panel displays and digital televisions, sells to customers such as
On a conference call, CEO James Donegan said the chipmaker will post revenue of $45 million to $46 million for the quarter ending in September, above the $42 million to $43 million it forecast in July.
The new estimate represents a sequential gain of as much as 10% from the previous quarter. It's also above current Wall Street expectations for sales of just under $42 million.
In after-hours trading, shares jumped 63 cents, or $7.35, to $9.20. Genesis Microchip closed for the day up 22 cents, or 2.6%.
On the call, Donegan predicted total shipments for the quarter will rise 25% to 28% sequentially. He chalked up the growth to two factors: First, buyers have worked off a build-up of chip inventory, and second, demand has risen for flat-panel displays as their prices have declined. The price of a 15-inch LCD panel slid from $260 at the end of the last quarter to $210 now.
Unit sales gains at Genesis won't translate directly to revenue gains, though, because the company's average selling prices are expected to drop.
The average price of a Genesis component will fall 10% this quarter, in line with company expectations, said CFO Eric Erdman. He predicted a shift toward lower-cost components will reduce blended ASPS by 16% to 20% in the quarter.
The company also predicted gross margins will fall in the range of 37% to 39%, excluding the effects of any charges. However, Genesis said it may take a charge of $1 million to $1.5 million to write off additional inventory reserves.
Analysts currently expect Genesis to post earnings of 5 cents a share, flat with the prior quarter, according to Thomson Financial/First Call.
The upbeat outlook from Genesis contrasts with bearish news from
, which weighed heavily on semiconductor shares Thursday. The Dutch company forecast that its chip sales will drop sequentially by 15%, rather than the 5% it had forecast two months ago.
The latest trends mark a reversal from the momentum seen earlier in the year. Philips posted a 10% sequential gain in chip sales for the quarter ended in June.
Chips ventured into the red on the news from Philips, with the Philadelphia Stock Exchange Semiconductor Index down 6.1%. Philips lost $1.45, or 7.9%, to close at $17.
On a related note, on Wednesday
said its chip sales had softened from the prior quarter. It also said operating income in its digital media and consumer products division was likely to be hurt by weak sales of mobile phones.