PortalPlayer Turns Profit

Sales triple, but shares fall after hours.
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said Monday that it reversed a second-quarter loss from a year ago on sales that more than tripled.

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iPod music player also indicated that third-quarter sales could climb higher than expectations.

But shares of PortalPlayer recently fell modestly in after-hours trading to $26.49 after closing the regular session down 41 cents, or 1.5%, to $26.65.

Under generally accepted accounting principles, San Jose, Calif.-based PortalPlayer reported net income of $6.3 million, or 25 cents a share, in the second quarter, on the basis of 25.1 million shares outstanding. That reversed a loss from a year ago of $880,000, or 64 cents a share, on the basis of 1.4 million shares outstanding.

Excluding stock-based compensation, PortalPlayer earned non-GAAP profit of $6.8 million, or 27 cents a share, in the second quarter, compared with $780,000 million, or 5 cents a share, a year earlier. Analysts were expecting the company to bring in earnings per share of 24 cents, according to Thomson First Call.

PortalPlayer's revenue more than tripled to $44.6 million from $12 million a year earlier but was flat sequentially. Analysts were expecting $44.1 million in second-quarter sales.

In April, PortalPlayer said it expected to earn 19 cents to 25 cents a share -- 21 cents to 27 cents a share excluding stock-based compensation charges -- on sales ranging from $41.6 million to $47.6 million in the second quarter.

Looking ahead, PortalPlayer expects third-quarter revenue to range from $50 million to $60 million, third-quarter GAAP earnings to range from 28 cents to 36 cents a share and third-quarter non-GAAP income of 30 cents to 38 cents a share.

Analysts' estimates most recently sat at the low end of those ranges, calling for PortalPlayer to post $51.2 million in sales and 30 cents a share in earnings in the current quarter.