Daniel Hoste (photo supplied)

Tundra Semiconductor Corp. (TSX:TUN) managed to turn a profit in its first quarter, despite a decline in revenues and pro forma earnings.

The Ottawa-based chip maker began its fiscal 2009 year with a net income of $437,000 or two cents per diluted share, compared to a loss of $973,000 or five cents per share a year earlier.

Revenues fell to $18 million from $20.1 million, and pro forma earnings also declined by 38.3 per cent to $1.2 million or six cents per share, but the numbers were on target with its predictions at the end of the fourth quarter of its fiscal 2008. Tundra had expected first-quarter pro forma earnings of between two cents and six cents, on sales of between $16.5 million and $18.5 million.

"In the first quarter we adapted our growth strategy to focus on maintaining our leadership position in RapidIO and on addressing new, broader, larger markets by expanding our PCI Express portfolio," said CEO Daniel Hoste in a statement. "We are excited about this strategy, setting up Tundra for steady growth from both product lines, while we continue to carefully manage our financial performance."

The company's cash position also increased in the first quarter, with cash, cash equivalents and short-term investments at the end of the period growing to $58.5 million from $57.4 million.