SMSC reports quarterly loss -- and record-high annual sales

Standard Microsystems Corp., of Hauppauge, reports a dip in quarterly revenue and profit, compared to the same quarter last year, but optimistic expectations from the company led to a spike Wednesday in its stock price and daily trading volume.

SMSC said it expects significant growth in its automotive products for the coming year, amid predictions that carmakers will continue to rebound.

With a workforce of 1,000, SMSC sells integrated circuits, USB, ethernet and wireless components to computer makers and automakers. Its products form the core of entertainment and information systems for various models of Porsche, Toyota, Audi, BMW, Daimler, Jaguar and Volvo vehicles.

SMSC shares by midday Wednesday were up more than 10 percent to $27.58, as daily trading volume reached more than 500,000 -- a level four times its average.

For its fourth quarter ended Feb. 29, SMSC on Tuesday reported a loss of $4.1 million on sales of $89.8 million, compred to a profit of $1.6 million on sales of $101.2 million for the quarter ending on Feb. 28 last year.

Part of the reason for the decline in fourth-quarter income was projected, in January, when the company disclosed that it would cut 50 jobs, resulting in a one-time, fourth-quarter charge for termination benefits. The one-time charge will result in recurring annual savings of $5 million-$6 million a year, the company said.

For the year ending Feb. 29, company revenues were $412.1 million, with profit of $10.662 million, compared to $10.627 million on sales of $409.4 million for the year ended Feb. 28, 2011. On a per-share basis, earnings remained stable year-to-year at 46 cents.

"Revenue in SMSC's fiscal 2012 reached a record level despite a difficult economy, with sales from our consumer electronics and automotive markets generating double digit annual growth," Christine King, president and chief executive, said.

"As we enter the new fiscal year, orders are improving and we expect strong sequential revenue growth in all of our vertical markets," King said.

Looking ahead to the first quarter of fiscal 2013, the company expects revenue in the range of $98 million to $102 million, she said.

Photo: SMSC chief executive Christine King.