PMC-Sierra swings to 2Q profit on chip demand

The Santa Clara, Calif., chip maker reported net income of $137.2 million, or 61 cents per share, for the quarter ended June 29. That compares with a loss of $22.3 million, or 10 cents per share, in the corresponding quarter last year.

Revenue rose 34 percent to $139.8 million, from $104.7 million in the second quarter of last year.

Excluding tax-related adjustments and other items, PMC-Sierra reported earnings of $29.7 million, or 13 cents per share.

Wall Street, on average, expected PMC-Sierra to earn 12 cents a share on $137.3 million, according to a survey of analysts by Thomson Financial. Analyst estimates typically exclude one-time gains and charges.

PMC-Sierra makes semiconductors used for storage and telecommunications networks. The company said it experienced strong demand for its fiber-to-the-home products in Asia and for its wireline network products.

Shares rose 62 cents, or 8.5 percent, to $7.93 in regular trading Thursday. The stock fell 18 cents, or 2.3 percent, to $7.75 in after-hours trading.