[October 29, 2010] Zarlink Semiconductor posts $6.8M Q2 profit on revenue increase of $10.1 million Tweet (Canadian Press DataFile Via Acquire Media NewsEdge) OTTAWA _ A 20 per cent increase in revenue helped Zarlink Semiconductor Inc. (TSX:ZL) rebound from flat earnings a year ago to post a US$6.8-million profit in its fiscal 2011 second quarter. Ottawa-based Zarlink said the earnings for the three months ended Sept. 24 amounted to five cents a diluted share. That compared with year-ago earnings for the period of just US$135,000, or less than a penny a share. Revenue for the quarter was US$59.9 million, up $10.1 million from $49.8 million in the prior-year period. President and CEO Kirk Mandy said he has been pleased with the company's performance in the first half, saying Zarlink has been successful in targeting key trends in the communications market, including the evolution of mobile Internet services, broadband network upgrades and the migration to new packet-based technologies. However, Mandy also issued a warning for the coming months. ``In line with many of our peers in the semiconductor industry, we anticipate some inventory rebalancing across the supply chain (that) could affect the pace of growth we have seen over recent quarters,'' he said. ``(But) While market variations may result in a small decline in expected third-quarter revenue we do not expect this short-term rebalancing will impact our long-term growth strategy. . . .'' Zarlink delivers mixed-signal chip technologies for a broad range of communication and medical applications. Its shares were up nine cents, or 4.33 per cent, at $2.17 Thursday on the Toronto Stock Exchange. (c) 2010 The Canadian Press [ Back To TMCnet.com's Homepage ]