Catalyst Semiconductor raises Q2 profit, shares fall anyway
Shares of Catalyst Semiconductor Inc. (Nasdaq: CATS) have dropped despite news after the close on Thursday that the manufacturer of semiconductors and non-volatile memory products reported fiscal second-quarter earnings that beat expectations.
Net income for the three months ended Oct. 28 was 1.3 million, or $0.07 per share, more than double the profit of $0.64 million, or $0.04 per share, a year earlier. Two analysts polled by Thomson Financial were looking for earnings of $0.06 per share.
The Santa Clara, Calif.-based company saw its revenues rise 27% to $20.7 million from $16.3 million during the second quarter of fiscal 2006.
The increase was attributed primarily to higher sales of analog/mixed signal products and manufacturing efficiencies. Revenue from the sales of analog and mixed signal products grew more than 40% for the third consecutive quarter.
“We are pleased to see the continued traction gained by our mixed signal business, which came on top of 41% growth in the first quarter of 2008 and 44% in the fourth quarter of 2007,” said president and CEO Gelu Voicu in a statement.
At 3:36 p.m. ET, shares of Catalyst Semiconductor (CATS) had retreated $0.61, or 10%, to $5.28. The 52-week low of $3 was set on Feb. 2, while the 52-week high of $7.92 was reached on Oct. 9.
