PMC-Sierra In Line

As expected, weak communications product shipments hit sales.
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posted adjusted earnings Thursday that were in line with Wall Street's lowered targets, as the company was plagued by weak communications product sales.

The maker of broadband and storage chips reported a bottom-line loss of $11.5 million, or 5 cents a share, reversing a year-earlier profit of $5.9 million, or 3 cents a share.

Excluding certain items, earnings were $17.4 million, or 8 cents a share, up from a year-earlier adjusted profit of $13.5 million, or 7 cents a share. Earnings on this basis were in line with Thomson First Call's average analyst estimate.

Revenue rose to $116.5 million from $76.2 million, bolstered by two acquisitions. Wall Street expected revenue of about $115 million.

Last month, PMC-Sierra shares were hit after the company lowered its revenue projection for the quarter to $114 million to $116 million, compared with a prior guidance of $122 million to $124 million. At the time, PMC said it had sluggish sales of its communications products, and the company echoed that sentiment Thursday.

"In the third quarter, our Enterprise Storage business showed strength as the Fibre Channel transition from 2G to 4G accelerated," said Bob Bailey, chairman and chief executive. "The growth in storage during the quarter, however, was offset by reduced shipments of communications products."

Shares of PMC-Sierra recently were up 9 cents, or 1.4%, to $6.39 in after-hours trading.