Trident raises fiscal 1st-quarter outlook

Trident raises fiscal 1st-quarter outlook, announces agreement to acquire NXP businesses

• On 5:44 pm EDT, Monday October 5, 2009

SANTA CLARA, Calif. (AP) -- Trident Microsystems Inc., which makes chips for high-definition TV sets, on Monday boosted its fiscal first-quarter outlook, largely due to higher sales.

The company also said it reached an agreement to acquire the television systems and set-top box businesses of Netherlands-based chip maker NXP Semiconductors.

The news sent Trident shares soaring 15 percent to close at $2.68.

Trident said it now expects a loss of about $10 million on revenue of about $31 million for the three months ended Sept. 30. That compares with earlier guidance of a loss of $12 million to $14 million on revenue of $22 million to $25 million.

Analysts surveyed by Thomson Reuters, on average, expect the company to report a loss of 18 cents per share on revenue of $23.5 million. Wall Street estimates typically exclude one-time items.

Trident plans to announce its fiscal first-quarter results on Oct. 26.

NXP will receive newly issued shares of Trident common stock equal to 60 percent of the total shares outstanding after the close of the transaction, including about 6.7 million shares that NXP will buy at $4.50 per share, resulting in cash proceeds to Trident of $30 million.