Net Earnings Double for Silicon Systems

Despite the continuing sluggishness of the computer industry, Silicon Systems Inc. reported net earnings of $556,000 for the third quarter of its fiscal 1986, more than twice the $261,000 reported a year ago.

The Tustin-based semiconductor maker said record revenues of $19.7 million helped fuel the rebound for the three-month period ended June 28. Revenues were $11.1 million in the year-ago quarter.

Owing to first-quarter losses of $2.4 million, Silicon Systems posted a $1.7-million loss for the first nine months of the fiscal year, compared to net earnings of $2.7 million in the same period a year ago. The company posted revenues of $47.1 million for the nine months, up 17% from $40.1 million.

New orders and backlog hit record levels in the third quarter, said Carmelo J. Santoro, Silicon System’s chairman and chief executive. For the current quarter, Santoro predicted a softening in demand for the semiconductors. He attributed much of the company’s sales growth during the past two quarters to “customers refilling depleted inventories as opposed to legitimate end-system shipments.”