Vitesse Semiconductor Profits Up 36% in Quarter

Vitesse Semiconductor Corp. in Camarillo, which makes non-silicon telecommunications chips, said that fiscal fourth-quarter profits rose 36%, due largely to increased use of the Internet.

Net income in the quarter ended Sept. 30 rose to $21.6 million or 26 cents a share, from $15.8 million or 19 cents a year earlier. Revenue rose 48% to $80.6 million from $54.6 million.

Vitesse said its chips accelerate telecommunications and data transmissions. Demand for such equipment, which directs data over the Web, is increasing as use of the Internet swells.

Vitesse’s customers include Lucent Technologies, the largest telephone-equipment maker, and Cisco Systems, the world’s largest maker of Internet equipment.

“It was a great story this quarter, and I think all the issues with Lucent are behind them,” said Hans Mosesmann, a Prudential Securities analyst who rates Vitesse a strong buy.

In April, Vitesse told analysts that Lucent, its largest customer, was hiring other manufacturers to meet demand for its products. Vitesse said that because of the change, it would not be able to give as specific sales information as it had in the past.

For the fiscal year, the company said net income rose 38% to $69.9 million or 84 cents a share, from $50.5 million or 63 cents for 1998. Revenue rose 59% to $281.5 million, from $176.9 million.