Irish chip designer Parthus Technologies said today it had cut first-quarter losses and was on track to return to profitability in the second half of this year despite a poor industry outlook.
Parthus, which is merging with the design licensing unit of US-Israeli hi-tech firm DSP Group, reported a pro-forma first-quarter net loss for this year of $2.4 million compared with a $3 million loss in the fourth quarter of 2001.
A sustained pick-up in the semiconductor industry is not expected until the end of 2002 but Parthus chief financial officer Ms Elaine Coughlan said continued growth in licensing and royalty revenues would push it into the black.
"The expectation is to break even in Q3 and to have a small operating profit in quarter 4 and by that we mean in a couple of per cent range," Ms Coughlan told reporters.
For the full-year 2003,Ms Coughlan said Parthus expected operating margins of around five per cent, which would increase to around 25 per cent for the merged group, to be called ParthusCeva.
The market welcomed the results. By 9.15 a.m. , Parthus shares were trading up 7.14 per cent at 38 pence.
Parthus has outperformed the FTSE technology sector, but its shares remain well below peaks of around 400p seen during the height of investor appetite for technology stocks in 2000.