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Tech Industry

Tech earnings a mixed bag

VLSI Technology, Cirrus Logic, and Shiva report mixed earnings results.

Focusing on its core business, VLSI Technology (VLSI) reported a jump in revenue and a rise in profits.

The company's stock gained 5/16 to end the day at 32-5/16, up from yesterday's close of 32.

For the third quarter of 1997, VLSI reported revenues of $181.2 million, up from $170.5 million for the same quarter one year ago.

Net income was $28.5 million, or 57 cents per share, compared with net income of $2.6 million, or 6 cents per share, for the same quarter last year, which included a charge for the resolution of certain patent issues with IBM.

Excluding a gain from the sale of its Compass Design Automation subsidiary to Avant, income from continuing operations for the third quarter reached $20.8 million, or 42 cents per share.

The company said it made progress on two of its strategic initiatives: selling Compass, and announcing a $120 million investment for a minority equity position in a new, deep submicron semiconductor manufacturing plant developed by Wafer Technology, a consortium of Malaysian and foreign investors organized under the sponsorship of the Malaysian government.

Cirrus Logic (CRUS) announced a revenue drop for the second fiscal quarter, but managed to report a jump in profits.

The company's stock dropped 4 percent to end the day at 16-9/16, down from yesterday's close of 17-1/4.

Revenue was $224 million, down 5 percent from $236 million for the second quarter of fiscal 1997.

Net income for the second quarter was $8.9 million, or 13 cents per share, compared with profits of $3 million, or 5 cents a share in the second quarter of last year.

Cirrus said its mass storage products division posted record revenues and a record unit volume for the second consecutive quarter. Revenue increased in the division by over 150 percent, driven by strong demand for its PRML family of read-channel products.

Shiva (SHVA) reported a drop in revenue as well as a loss for its third quarter ended in September, which was in line with the company's expectations.

The company's stock dropped 7/16, to 13-1/2, down from yesterday's close of 13-15/16.

Revenue for the quarter was $35.6 million, compared with $57.1 million in the same quarter a year ago. Net loss for the quarter was $2.1 million, or 7 cents per share, compared with net income of $6 million, or 19 cents per share, for the third quarter of last year.

Remote access product sales accounted for 90 percent of total sales, consistent with last quarter. Unit sales of the company's recently introduced LanRover PowerUp series were strong in the quarter, while softness in the mid-tier ISPs in the North American market had a negative impact on Access Switch sales.

The company expects flat to modest revenue growth in the fourth quarter, as it continues to manage its transition in the rapidly changing remote access marketplace.