Virata Corp. (Nasdaq: VRTA) said Thursday it expects second quarter revenues for the period ending Oct. 1 to be about $41.5 million, up 50 percent over the prior quarter's $27.7 million.
Shares in the maker of communications processors for digital subscriber line modems and other network equipment were up 13 percent, or 6.89, to 56.88. The company also preannounced strong results for its first quarter.
The company attributed this strong growth to continued expansion in North America, high-volume DSL deployments in Asia and Europe, and new customer design wins across the globe as DSL reaches mass-market acceptance.
"Earlier this quarter we announced our second multi-million dollar contract with Siemens for Deutsche Telekom in Europe; and we're seeing similar deals with our Asian and US customers and the local telecommunications providers they supply with products," CEO Charles Cotton said in a statement.
The company said it will continue to execute on its plan to expand its customer-mix and secure design wins with new products that are currently gearing up for production. Since only 25 percent of customers are in volume production today, Virata said it is well positioned to grow in the future.
The company will announce its full fiscal second quarter results on October 25. First Call is expecting a profit of 8 cents a share for the quarter.