Microcontroller supplier Zilog Inc. (San Jose) posted a net loss of $2.0 million on sales of $22.8 million, compared to a net loss of $2.0 million on sales $26.0 million a year ago. Gross margin slipped from 49 percent a year ago to 46 percent, as the company closed its wafer fab in Idaho and adopted a fab-less manufacturing strategy.

"This quarter was challenging because of weak end market demand for consumer products, resulting in excess inventory at our customers and pressure on OEMs to significantly reduce their inventory positions," said Jim Thorburn, Zilog's chief executive, in a statement.

Communications semiconductor supplier TriQuint Semiconductor Inc. (Hillsboro, Ore.), posted a net loss of $4.1 million on sales of $89.7 million, compared to earnings of $0.29 million on sales of $92.6 million the previous quarter. Gross margin was 23.6 percent, down from 32.4 percent the previous quarter due to lower sales and a write-off of excess and obsolete inventory associated with certain optical networking products.

The company said it is focusing more on the handset market with RF saw filters and filter modules, duplexers, and GSM power amplifiers, and is continuing to look at streamlining its troubled optoelectronic business.

Better results emerged from Microchip Technology Inc. (Chandler, Ariz.). The analog semiconductor and microcontroller supplier posted September quarter earnings of $60.4 million on sales of $220.7 million, up slightly over the previous quarter and significantly from the year-ago quarter, when the company earned $36.1 million on sales of $168.5 million.

Although Microchip said it managed to lower inventory levels, bookings remain weak, and the company expects December quarter sales and earnings to be flat with the September quarter.

A slowdown in the previously-hot Asia-Pacific market affected results at programmable logic device supplier Xilinx Inc. (San Jose). The company posted net earnings of $86.2 million on sales of $403.3 million, down from $95.3 million on sales of $423.6 million the previous quarter though up from $56.4 million on sales of $315.5 million a year ago.

Xilinx said that while European sales improved on strengthening communications, industrial, and automotive business, sales in the Asia-Pacific region declined 15 percent sequentially. The company attributed the weakness to excess inventories at customers with Asian manufacturing operations and a slowdown in China for technology products.

By: DocMemory
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