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Quarterly profits soar at Standard Microsystems

Christine King, chief executive of Standard Microsystems

Christine King, chief executive of Standard Microsystems in her Hauppauge office. (December 2009) Photo Credit: Howard Schnapp, 2009

Standard Microsystems Corp., a Hauppauge maker of integrated circuits, USB and Ethernet controllers, saw its profits increase nearly tenfold in its most recent quarter, compared to its performance in the same quarter last year.

SMSC's soaring profit came on revenue that increased only slightly compared to the same quarter last year -- revenue increased by 6.5 percent while profit increased 980 percent.

The company had net income of $6.17 million in the quarter ended May 31, on revenue of $103.5 million, up from the year-ago quarter's $627,000 net income on $97.15 million revenue.

SMSC president and chief executive Christine King said the company's strong performance was fueled by sales to makers of personal computers and cars, despite the crisis in Japanese manufacturing this year. The company also lowered its operating expenses.

The company has steadily increased its network of high-end vehicle makers, supplying entertainment and information system components to Audi, BMW, Daimler, Hyundai-Kia, Jaguar, Land Rover, Porsche, Toyota and Volvo.

Its acquisitions of BridgeCo Inc. in May, and of Kleer Semiconductor Corp. last year, added to SMSC's product offerings. BridgeCo makes networked audio technologies, including its JukeBox system that connects tablets, smartphones, PCs, Macs and other devices.

"Automotive revenue set another new record in the first quarter despite some weakness in our Japanese automotive business," King said in a news release. "...Our enterprise PC business remains healthy, which is the largest share of our overall PC sales."

She said she expects no further significant effects on SMSC from the aftermath of Japan's earthquake, tsunami and nuclear plant disasters.

With a market capitalization of $528 million, SMSC had $409 million in revenue in the past 12 months, according to Yahoo Finance.

Founded in 1971, it has operations in Canada, Germany, Bulgaria, Sweden, India, Japan, China, Korea, Singapore, and Taiwan. For the company, the acronym SMSC also stands for "smart mixed-signal connectivity", referring to its wide-ranging wired and wireless connectors that link digital, analog and mixed components. 

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