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CNNfn after the bell
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January 28, 1999: 5:44 p.m. ET
Chip-related firms thwart estimates; Gillette 4Q in line with expectations
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NEW YORK (CNNfn) - Semiconductor companies left many Wall Street analysts scratching their heads Thursday, after several chip-related firms posted stunning results.
Lam Research Corp. (LRCX) outperformed analysts' expectations by a wide margin, reporting a much smaller than expected loss in the second quarter. Excluding a previously announced restructuring and licensing-related charges, the semiconductor company posted a loss of $24.4 million, or 64 cents per share, much better than estimates of a 94-cent loss. For the same period last year, Lam earned $3.5 million, or 9 cents per diluted share. Revenues fell to $141.9 million from $292.1 million. The company said early signs of a recovery in the semiconductor industry led to increased demand for the wafer processing equipment that Lam manufactures, boosting profits.
LSI Logic Corp. (LSI) also bested estimates, posting a profit of $13 million, or 9 cents per share. Excluding special items and goodwill amortization, net income was $8 million, or 5 cents a share. Analysts surveyed by tracking firm First Call had forecast a 3-cent loss. The company earned $30.7 million, or 22 cents per share, in the same period in 1997.
Revenues climbed almost 40 percent to $445 million from $323 million for the same period last year. LSI cited the " long-awaited recovery of the semiconductor industry" and said the company was "well positioned for an industry upturn."
Internet firm Broadcast.com (BCST) also outdid analysts' expectations in the fourth quarter, as the streaming media company more than doubled its revenues. Excluding one-time items, Broadcast.com posted a fourth quarter loss of $3.7 million, or 21 cents per diluted share, on revenues of $7.6 million. For the same period last year, the loss was $2.2 million, or 18 cents per share, on revenues of $3.2 million. Analysts had forecast a per-share loss of 25 cents.
Outside the closely-watched technology sector, Gillette (G) posted a fourth quarter profit exactly in line with Wall Street estimates. The company earned $435 million, or 39 cents per share, compared with last year's comparable $418 million, or 36 cents per diluted share. Sales climbed 6 percent to $3.17 billion from $2.9 billion for the same period last year.
Excluding the adverse affects of currency exchange and the divestiture of Jafra Cosmetics International, sales rose 11 percent. In a statement, Gillette said its MACH3 shaving system has done better than expected and anticipates "further progress in 1999." The company is aiming for 15 percent to 20 percent earnings-per-share growth in the second half of the year.
In non-earnings news, Starbucks Corp. (SBUX) reported that its same store sales climbed 6 percent in January. For the 17-week period ended Jan. 24, comparable store sales increased 4 percent.
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