iPod chip-maker PortalPlayer 4Q profit more than doubles on sharply higher sales

“PortalPlayer Inc., a maker of chips for digital music players, said Thursday its fourth-quarter profit more than doubled on sharply higher sales during the period,” The Associated Press reports.

“PortalPlayer, whose chips are used in Apple Computer Inc.’s iPod, also pegged its first-quarter revenue ahead of Wall Street estimates. Shares fell 95 cents to close at $27.27 on the Nasdaq, but jumped nearly 10 percent in after-hours trading,” AP reports. “The company’s earnings rose to $23.8 million, or 92 cents per share, from $10.5 million, or 50 cents, a year ago. Excluding stock-option costs and a tax-related benefit, earnings were 62 cents per share. That surpassed the average view for profit of 48 cents per share from analysts surveyed by Thomson Financial.”

More details here.

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  1. Don’t fret “R”. The whole market’s in the tank. Hopefully, if you own AAPL, you’ll be back in good stead within a few months. As soon as their next big thing comes out, Apple’s share price should start heading north again.

  2. The article says that they had revenue of $78.2m this past quarter and are forecasting revenue to be between $70m to $80m in the current quarter. Which means they see little revenue dropoff, if any.

    Assuming that Apple is still their largest customer by far (Apple accounted for over 90% of revenue at one point), this means Apple is still buying at close to the same rate as last quarter when Apple sold 14m iPods. Yet Apple has issued a much lower forecast for the current quarter. Was Apple’s forecasted reduction entirely due to slower sales of everything other than iPods? Or is Apple building up channel inventory for another iPod surge, most likely related to a new iPod model?

    What are Apple’s plans (MW=plans)?

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