Vitesse Semiconductor (VTSS) Reports In-Line Q1 EPS

Vitesse Semiconductor (NASDAQ: VTSS) reported Q1 EPS of ($0.04), in-line with the analyst estimate of ($0.04). Revenue for the quarter came in at $24.8 million versus the consensus estimate of $25.1 million.

Vitesse Semiconductor sees FY2015 revenue of $24-26 million, versus the consensus of $26.3 million.

“New product revenue continues on a solid trajectory reaching $16.2 million in the quarter, up 82% on a year to year basis. New products now represent 68% of our total product revenue,” said Chris Gardner, CEO of Vitesse. “Our customer profile continues to grow and evolve as our position strengthens in new, adjacent markets such as IoT and storage, which are literally reshaping our business and expanding our market opportunity. Our expanded sales team dramatically increased both opportunities and design wins, more than doubling the number of new customers in the pipeline, setting us on pace for another record year. As Ethernet propagates into new markets, our total addressable market will triple from approximately $1 billion today to over $3 billion by 2020.”

“As anticipated, we saw a meaningful decrease in revenue from our legacy products in the first quarter and expect another smaller decline in the second quarter. These declines will be more than offset by new product revenue growth of 50% to 75% for the full fiscal year. We continue to manage expenses carefully as we move through the transition and remain on target to deliver gross product margins of 60% in fiscal year 2015. All told, the leading indicators of our business are strong and we are well positioned with the technology, products, market position, and customers to capitalize on the exciting growth opportunities we are seeing in the market.”

For earnings history and earnings-related data on Vitesse Semiconductor (VTSS) click here.

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