Profit Flows at Freescale

The chipmaker also reports a third-quarter sales rise of 12%.
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Freescale Semiconductor

(FSL)

on Thursday said it beat Street estimates by 9 cents on a spike in chips used in autos and cell phones.

The chipmaker reported sales for the third quarter ended Sept. 29 of $1.62 billion, a rise of 12% over last year.

Austin, Texas-based Freescale earned $257 million, or 61 cents a share, vs. income of $164 million, or 38 cents a share, a year ago.

Street consensus called for a profit of 52 cents a share on sales of $1.58 billion.

Freescale issued in-line guidance for the fourth quarter, pegging revenue at $1.54 billion to $1.64 billion. Analysts were looking for sales of $1.61 billion.

The company reported quarterly gross margin of 46.1%, higher than 42.9% a year earlier.

Shares of Freescale recently rose 5 cents to $39.15 after hours.

In mid-September, Freescale announced that it had entered into a definitive merger agreement to be acquired by a private equity consortium in a transaction with a total value of $17.6 billion.