Shares of Inphi (NASDAQ:IPHI) have soared today, up by 12% as of 1 p.m. EDT, after the company reported first-quarter earnings results. Inphi, which sells high-speed components for data centers, is seeing strong demand for its products, as the novel coronavirus outbreak has shifted much activity online.
Revenue in the first quarter soared 70% to a record $139.4 million, compared to the consensus estimate of $135.2 million. Inphi attributed the growth to higher demand for cloud and telecommunications products and the acquisition of eSilicon that closed in January. Adjusted net income came in at $31.5 million, or $0.62 per share, while Wall Street was looking for just $0.55 per share in adjusted profits.
In a statement, CEO Ford Tamer said:
Prior to the crisis, we were already delivering on new product cycles for our cloud and telecom customers. These included upgrades of data center, 5G, metro and long-haul networks to PAM and Coherent technologies, designed to increase available bandwidth. Now, we believe the significant paradigm shifts brought on by 'work from home', electronic commerce, distance learning, streaming and other remote usage activities may result in further acceleration of bandwidth upgrades.
Revenue in the second quarter is expected to be in the range of $147.8 million to $152 million, which should result in adjusted net income of $33.15 million to $36.35 million, or $0.62 to $0.68 per share. That outlook is ahead of the $133.9 million in sales and $0.50 per share in adjusted profits that analysts are currently modeling for.