Earnings in Brief
The quarterly earnings parade continues to march on as several new companies involved in the wireless sector recorded results, including Siemens, Andrew Corporation, Gemplus and Axalto.
Siemens' mobile phone unit continued to weigh on its quarterly results, which included a 52 percent drop in third-quarter net profit. The company reported a net profit of $466.4 million, or 50 cents a share, down from $989.1 million, or $1.06 per share. Revenue increased nearly 7 percent to $22.5 billion. During the quarter, Siemens inked a deal to unload its handset business to Taiwan's BenQ, but the company warned losses from the unit likely would impact results for the next quarter.
Andrew Corporation posted a 1 percent slip in third-quarter sales to $487.2 million, down from $493.0 million a year ago, which according to the company was a new record. Sales from its wireless infrastructure business, however, increased 8 percent year-over-year to $465 million. Net income dipped to $13.0 million, or 8 cents per share, from $17.7 million, or 11 cents per share, a year ago. "Our core wireless infrastructure business continues to demonstrate solid growth while expanding our ability to deliver new products and active components direct to operators and to OEM customers worldwide," said Andrew President and CEO Ralph Faison.
Gemplus reported a 12.2 percent increase in second-quarter sales to $286.9 million from $255.6 million. The company said the Americas and EMEA led its up-tick in revenue. Operating profit more than tripled to $27.2 million from $8.3 million.
Axalto posted a 15 percent increase in second-quarter revenue to $260.9 million. The company says more than 110 million microprocessor cards were delivered by the end of the quarter. As for the first six months of the year, the company recorded a 16 percent increase in revenue to $498.2 million.