Including a one-time charge of 22 a share, Adaptec reported a net loss of $24.2 million, or 22 cents a diluted share, in the three months ended September 30, versus a profit of $62.7 million, or 52 cents, in the same period a year earlier.

Revenues tumbled 48 per cent to $144 million from $278 million, amid a sharp downturn in the semiconductor industry and a volatile pricing environment for its disk drive maker customers. The decline in revenues also in part reflected a reduction of product inventories in the distribution channel.

On an operating basis, before any charges from its recent restructuring, the results were slightly better than expected, with break-even earnings. Operating earnings were $143,000, or nil per share. According to First Call, which tracks analysts' estimates, theconsensus among Wall Street analysts was for a loss of 2 cents a share.

``This is slightly exceeding the expectations that we shared with you in September,'' Adaptec's recently named chief financial officer Andy Brown told analysts on a conference call.

The results were announced after the close of regular US stock trading. Earlier, Adaptec shares gained $1.50 to $14 in trading on the Nasdaq.

In September, Adaptec announced that it was embarking on a programme to refocus on its core business, the SCSI, or small computer system interface, adapter business. SCSI products are controllers that enable computers to communicate with peripheral devices such as storage systems.

As part of that move, Adaptec formed three strategic alliances and transferred its product development in these non-core businesses -- fiber channel products, external storage and satellite networking -- to these three groups.

Over the year, the company has also cut 850 jobs in order to pare its high operating expenses, amid sluggishdemand from the Asian financial crisis and the broader industry slump.

But executives told analysts on the conference call that they were optimistic about the second half of the year, as the company has brought its expenses in line with revenues.

``The best way to make money in the future is to make money today,'' said president and chief operating officer Bob Stephens ``Earnings will be up, revenues will be up and expenses will be down,'' he said, referring to the second half.