Fibre channel sales in the third quarter boosted Vitesse Semiconductor Corp. (Nasdaq: VTSS) past Wall Street forecasts.
In fiscal third quarter results released after market close Monday, the maker of chips for communications systems posted net income of $19.4 million, or 24 cents a share. First Call's survey of 13 analysts predicted a profit of 23 cents a share for the quarter ended June 30.
Third quarter sales rose to $73 million, up 58 percent from $46.1 million in the year-ago comparable period, when Vitesse earned $13.9 million, or 18 cents a share. The company saw revenue rise 9 percent sequentially.
Vitesse saw especially strong sales for chips used in gigabit systems that use fibre channel technology, said Lou Tomasetta, president and CEO.
The company has a history of topping analyst estimates, which could be analysts generally favor the stock. Of 11 firms polled by Zack's Investment Research, eight recommend Vitesse as a "strong buy" and three maintain the equivalent of "moderate buy" ratings on the stock.
Shares of Vitesse rose 3/4 to 71 3/4 in Monday's trading prior to the earnings release. Since sliding last fall along with the overall market, Vitesse's stock price has nearly quadrupled.>