Microsemi Loses $8.4 Million as Fiscal Year Ends

Microsemi Corp. said Wednesday that it lost $8.4 million for its fiscal year ended Oct. 1, as it took an $8.9-million charge for disposition of five businesses during the year. The loss compares to earnings of $3 million in fiscal 1988. The company said revenue for the fiscal year rose 24%, to $103.5 million from $83.7 million.

In May, Microsemi announced its decision to concentrate on its core semiconductor business, a change from its previous acquisition strategy.

“While we strongly believe the decisions to restructure and refocus the company are essential for our long-term success, we are obviously greatly distressed with this year’s performance,” said Phil Frey Jr., president, chairman and chief executive.

He said, however, that after completion of the restructuring plan, “we expect Microsemi to return to its historically predictable growth and strong profits.”

The net loss for the fourth quarter totaled $9.4 million, contrasted with net income of $1.4 million for the like period last year. Revenue declined 4%, to $25.2 million from $26.2 million.