SiRF Tech's Earnings In Line

Profit is up year over year at the GPS chipmaker, but revenue is just shy of estimates.
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SiRF Technology Holdings

(SIRF)

delivered strong growth in its top and bottom lines in the second quarter, the company reported Tuesday.

The San Jose, Calif., company said net income in the three months ended June 30 totaled $2.1 million, or 4 cents a share, up roughly 26% from the $1.7 million, or 3 cents a share, profit at this time last year.

Excluding $8.8 million in employee stock compensation expenses, as well as certain other acquisition related expenses, SiRF said it earned 23 cents a share. Analysts polled by Thomson Financial were looking for 23 cents EPS, excluding stock expenses.

Sales climbed more than 20% year over year to $70.6 million, a hair shy of the $71.5 million expected by analysts.

SiRF makes chips that use global positioning satellite technology to allow automobiles, cell phones and other devices to offer location-based features and capabilities. Earlier Tuesday, the company announced a licensing deal with

Intel

(INTC) - Get Report

whereby SiRF's GPS chips will be part of Intel's reference design for a new class of ultramobile PCs.

"The momentum behind GPS location technology continues to accelerate with SiRF-based new product announcements coming from customers in all our market segments," said CEO Michael Canning.

The company did not provide financial guidance for the current quarter, although it was scheduled to hold a conference call with analysts following its earnings release.

Shares of SiRF were down 6.1%, or $1.44, at $22 in extended trading Tuesday.