24 luglio 2008 / 22:25 / 9 anni fa

UPDATE 2-SiRF posts wider-than-expected Q2 loss

(Adds outlook, analyst comments)

By Bijoy Anandoth Koyitty

July 24 (Reuters) - Chipmaker SiRF Technology Holdings Inc SIRF.O posted a wider-than-expected second-quarter loss as it was hurt by weak demand from certain customers, increased competition and economic uncertainties, sending its shares down 17 percent.

The company also guided third-quarter results far below analysts’ expectations.

“SiRF’s nearest rival Broadcom Corp BRCM.O could potentially be limiting SiRF’s growth on the wireless business,” Collins Stewart analyst Ramesh Mishra said by phone.

SiRF’s key accounts on the wireless side includes Motorola MOT.N and Research In Motion RIM.TO, among which Motorola is “not doing alright,” Mishra said.

At the same time, Broadcom has its key client in Apple Inc (AAPL.O) for the popular iPhone, he said.

For the third quarter, SiRF expects to post a loss of 17 cents to 21 cents a share, excluding items, on revenue of $60 million to $64 million, its interim CEO Diosdado Banatao said in a conference call with analysts.

Analysts on average were expecting a loss of 1 cent a share, before items, on revenue of $70.4 million, according to Reuters Estimates.

The company posted a second-quarter loss of $332.6 million, or $5.41 a share, compared with earnings of $2.1 million, or 4 cents a share, in the year-ago quarter.

Excluding items, the company reported a loss of 19 cents a share. Net revenue fell more than 10 percent to $63.1 million, hurt by a 11 percent drop in product revenue.

Analysts on average were expecting a loss of 13 cents a share, before items, on revenue of $62.1 million, for the period ended June 30.

Shares of the company fell to $3.49 in trading after the bell. They closed down 14 cents at $4.22 Thursday on Nasdaq. (Editing by Pratish Narayanan, Deepak Kannan)

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