After more than three years, chief executive officer Pat Brockett's work at Zarlink Semiconductor Inc. of Ottawa is starting to pay off.
This summer, he announced the company's first quarterly profit since he took over and analysts have been generally impressed by Mr. Brockett's initiatives, even if investors haven't.
"This . . . is a turning point for this company," he told analysts. "We're beginning to see the results of three years of hard work."
The company reported profit of $7.5-million (U.S.) or 6 cents a share on sales of $55.8-million for the fiscal first quarter ended June 25. Despite the improving financials, the stock has drifted down through the back half of the summer, off about 35 per cent from where it was at the end of June.
Brian Piccioni, Toronto-based semiconductor analyst at BMO Nesbitt Burns Inc., raised his rating on Zarlink to "outperform" from "perform" in the wake of the first-quarter results. He said Mr. Brockett and his team have "worked a miracle" to cut the company's costs and set it on what Mr. Piccioni believes is a good long-term strategy . . .
[Read the full story in today's Globe and Mail]