Vitesse's 1st-Quarter Loss Narrows

From Bloomberg News

Vitesse Semiconductor Corp., which makes chips for telecommunications gear, said Monday that its fiscal first-quarter loss narrowed to $11 million as expenses fell.

The loss was 6 cents a share, from $106.9 million, or 54 cents, a year earlier, the company said. Sales fell 2.4% to $38.2 million, from $39.1 million.

Excluding expenses, the company said, its loss was 6 cents a share. On that basis, the loss matched the average estimate of analysts surveyed by Thomson First Call.

Vitesse President and Chief Executive Lou Tomasetta acknowledged that capital spending was down and revenue was essentially flat in the quarter.

"We are, however, encouraged by indications of near-term strength in the metro, enterprise and storage markets," Tomasetta said. "Our ongoing cost-cutting efforts have resulted in continuing improvements to the bottom line."

The company's operating expenses declined from $47 million in the September quarter to $39 million in the first quarter of fiscal 2003. "We expect this number to drop to $38 million in the March quarter," Tomasetta said.

Vitesse Chief Financial Officer Eugene Hovanec didn't immediately return a message.

Shares of Camarillo-based Vitesse fell 13 cents to $2.08 in Nasdaq trading.

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