Standard Microsystems Corp., of Hauppauge, a maker of computer chips and in-car entertainment networks, reports quarterly financial results that included higher revenue but lower profits compared to the year-ago quarter.
SMSC had $11.8 million income on revenue of $112.5 million for the three-month period ending Aug. 31, compared to $12.8 million income on revenue of $104 million for the corresponding quarter last year.
Pre-market trading in SMSC sent shares down $1.04, to $19.48, a decrease of more than 5 percent, a trend that moderated by mid-afternoon, leaving the stock price about 3 percent off its opening level.
SMSC, which sells its chips to computer makers and automakers, has steadily increased its network of vehicle makers, supplying entertainment and information system components to Audi, BMW, Daimler, Hyundai-Kia, Jaguar, Land Rover, Porsche, Toyota and Volvo.
Comparing the quarter ending Aug. 31 to the year-ago quarter, the company's cost of goods increased sharply from $45.4 million in 2010 to $52.2 million this year, and its research and development costs rose nearly $3 million to $60.3 million.
Net income per share dropped from $0.57 to $0.51.
Second quarter revenue included $8.7 million in sales related to its buy of BridgeCo, a maker of networked audio technologies.
"Despite a very challenging macro environment, SMSC delivered record revenue in the second quarter of fiscal 2012," Christine King, chief executive (shown in photo), said in a news release.
"Automotive and wireless audio sales were strong, with automotive reaching a record level in the second quarter," King said.
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