Genesis Microchip Soars on Earnings Growth

The flat panel equipment supplier posted a better-than-expected fourth quarter.

Author:: Michael Dunn
Publish date:: Apr 30, 2002 9:24 AM EDT

Genesis Microchip

(GNSS)

was climbing by almost 20% in premarket trading after the company posted a narrower fourth-quarter loss and a pro forma profit, beating analyst estimates.

The supplier of circuits and software used in the manufacture of flat panel displays said its fourth-quarter loss was $336,000, or 1 cent a share, compared with a loss of $2.8 million, or 15 cents a share, in the year-ago quarter.

Excluding one-time charges, the company posted a pro forma profit of $8.9 million, or 32 cents a share, reversing the year-ago loss of 15 cents. According to Thomson Financial/First Call, analysts had expected the company to earn 30 cents a share.

Revenue was $56.1 million, up from $18.5 million a year ago.

For 2003, Genesis expects revenue to exceed $60 million in the first quarter and revenue of $250 million to $270 million for the full year. Analysts polled by First Call are looking for $61 million in the first quarter and $255.70 for the year. Genesis also said it expects gross margins in the first quarter to be about 40%, with first-quarter operating expenses of $14 million to $14.5 million.

Shares of Genesis Microchip were recently up 17.5% to $23.83 in Instinet trading on the news after closing at $20.28 Monday.