SiRF Q3 earnings: continued decline



SiRF Q3 earnings: continued decline
GPS silicon vendor SiRF announced yesterday net revenue of $60.1 million in the third quarter of 2008, a decrease of 34.1 percent from $91.2 million reported in the third quarter of 2007. Gross margin in the third quarter of 2008 was 42.7 percent, as compared to 49.3 percent last year. Net loss for the third quarter of 2008 was $20.9 million which compares with net loss of $16.1 million in the third quarter last year.

In this quarter the volume of chipset sold declined 26% and the average selling price decreased 13% compared to one year ago. 60% of the company revenue is in the auto and PND segment, 30% in the wireless segment.

SiRF revenue outlook for the fourth quarter of this year is in the $50 million to $55 million range.

The ITC litigation with Broadcom is currently limiting the visibility over the future of the company. In addition, SiRF seems unable to take advantage of the growth in the GPS market which continues at a rather good pace despite the general slowdown in the economy (the good financial shape of competitors such as u-blox demonstrates there is profit to be made on this market). As a result the SiRF share is now trading under one dollar and its market capitalization is just below $60 million.

Thursday, October 30th 2008


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