Vitesse Continues Move Into Profitability

Vitesse Semiconductor Corp. of Camarillo reported its second consecutive profitable quarter after two years of heavy losses.

Vitesse, which manufactures gallium-arsenide semiconductors, posted a profit of $174,000 in its fiscal fourth quarter ended Sept. 30, compared to a year-earlier loss of $3.2 million. Revenues totaled $9.7 million in the latest quarter, up 21% from $8 million a year earlier.

For its fiscal year, the company reported a $4.1-million loss on revenues of $35.6 million, compared to a year-earlier loss of $19.1 million on revenues of $26.4 million.

Vitesse, which has struggled with the decline of the supercomputer market, attributed its improved financial results to a broadened customer base and expansion into communication markets, including fiber-optic transmissions.

The company also said it has reached a tentative settlement of a class-action lawsuit filed against the company by two shareholders in 1992. The suit alleges Vitesse violated securities laws by making misleading statements in its prospectus in 1991.

Vitesse said it has agreed to pay $1.4 million to the plaintiffs, of which about $975,000 will be covered by the company’s insurance carrier. Earnings in the latest quarter were hampered by a one-time $425,000 charge related to the settlement of the suit.