Microtune, Inc. (TUNE), a designer and marketer of radio frequency (RF) solutions for the worldwide consumer electronics and automotive electronics markets, reported better than expected second quarter results yesterday after the close. Revenues rose to $26.6 million, an increase of 7% year over year and 5% sequentially. Net income fell 19% to $1.7 million. On a non-GAAP basis excluding items, Microtune earned 6 cents per share vs. analysts’ estimates of 4 cents per share.
“The second quarter represented another record revenue level for Microtune, driven by strong demand in our core cable and automotive markets. Our strong financial performance was capped by a major achievement – the shipment of our 100-millionth silicon TV tuner chip,” said James Fontaine, Microtune President and CEO. “While we remain cautious of unforeseen macroeconomic factors, we expect solid revenue growth in the third quarter and for the full year 2008.”
Microtune provided guidance for the third quarter. The company expects to recognize a greater profit than in the second quarter on sales of $27.5 million to $29.0 million. Analysts currently expect earnings of 5 cents per share on revenues of $27.6 million. Microtune’s Board of Directors authorized a stock repurchase plan during the quarter that allows for the repurchase up to $10 million of its outstanding shares of common stock until the end of 2008. The company to date has already repurchased and retired approximately 927,000 shares of its common stock at a cost of $3.7 million.
Shares of TUNE closed Monday at $3.27 and have traded in a 52-week range of $2.60 – $6.88. The 52-week low was set two weeks ago on July 15. The early pre-market bid in TUNE suggests a gap higher on the open of approximately 5%.
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