SiRF Technology Records Loss Again for the Q3

The financial loss that SiRF Technology Holdings has been battling with is not getting any better but rather they seem to be drowning in the ocean of financial crisis even as they make account for this year third quarter.

SiRF stated that Q3 was another challenging quarter marked by weakness in demand driven by global economic uncertainty and continued competitive pressures that impacted both its revenue and margins. While the company says its newer products are showing good design win traction, it nevertheless continues to be cautious in its outlook because of economic uncertainties and the competitive environment.

According to the company's financial report, the net revenue in the third quarter (Q3) of 2008 was $60.1 million, a decrease of 34.1 percent from $91.2 million reported in Q3 2007. That resulted in a net loss of $20.9 million, or 34 cents per diluted share, compared to a net loss of $16.1 million, or 28 cents per diluted share in the year ago period. Gross margin in the third quarter of 2008 was 42.7 percent, compared to 49.3 percent in the third quarter of 2007.

Similarly, the net revenue in the first nine months of 2008 was $185.2 million, a decrease of 19.1 percent from $229 million in the first nine months of 2007. Net loss for the first nine months of 2008 was $381.6 million, or $6.22 per diluted share, compared with net loss of $11.1 million, or 21 cents per diluted share, for the first nine months of 2007. Gross margin in the first nine months of 2008 was 35.2 percent, as compared to 52.1 percent in the first nine months of 2007, the company explained.

Some have attributed the company's to its legal battles; the company is embroiled in a patent dispute with rival Broadcom in both federal court and before the International Trade Commission. At any rate, there is no indication that the company is going to get out of this mess soon.