Struggling video chip maker Trident Microsystems (TRID), which collapsed last year amid increasing competition from Broadcom (BRCM) and others, dashed hopes of optimists once again Monday evening, missing Q4 estimates for sales and profit. The company did forecast above consensus for the fiscal first quarter.
Fiscal Q4 sales fell 62% to $14.9 million versus the average $16.97 million estimate, yielding a net loss of 24 cents a share, a penny worse than expected. However, for the current quarter, the company forecast revenue of $22 million to $25 million above the average $21.9 million estimate.
The upside appears to be a result of the firm’s integration of business it took hold of through its acquisition of chip assets from Swiss semiconductor designer Micronas, which closed in May.
Trident Micro CEO Sylvia Summers said the company believes the acquisition will help the company to win business for digital TV chips from “top tier” TV vendors in 2010.
Despite the upbeat outlook, the company said it expects economic uncertainty to continue to weigh on the industry, and so it will cut 10% of its work force, roughly 62 people, beginning this week.
Trident shares Monday closed up 11 cents, or 5.5%, at $2.10.