Chip Distributor Wyle’s Quarterly Income Doubles

Strong chip demand helped semiconductor distributor Wyle Laboratories Inc. achieve a 96.7% surge in third-quarter net income--to $3.65 million, or 35 cents a share, from $1.85 million, or 18 cents, last year.

Wyle said Monday that it took a one-time pretax charge of $947,000 in the quarter ended Oct. 31, which reduced its net income from $4.25 million. The charge was for an early retirement plan affecting about 50 employees, 2% of the payroll.

Revenue rose 32% to $146.3 million from $110.7 million a year ago.

The company’s earnings were in line with analysts’ estimates.

El Segundo-based Wyle has benefited from the rapid recovery in the U.S. semiconductor market this year. The Semiconductor Industry Assn. estimates that industry sales will reach $17.2 billion this year, nearly 17% more than last year.

Wyle’s electronics marketing group, its semiconductor arm, accounted for third-quarter revenue of nearly $122 million, or 83.2% of the total. The division’s earnings jumped 131% to $6.97 million from $3.02 million a year ago.

The top six U.S. semiconductor makers, as well as many smaller ones, use distributors such as Wyle to speed microelectronic components to computer makers and other manufacturers. The distributors also assemble some components for shipments.

Chairman Charles M. Clough said the distributor’s margins fell because of increased discounting in the semiconductor industry. Better internal management and increased sales helped improve profit, he said.