S3 Inc, the Santa Clara, California-based maker of graphics and video accelerators, has reported second-quarter net income of $1.1m, or $0.02 per share, on revenue up 7.4% at $57.3m, compared to a net loss of $11.6m in the year-ago quarter. Results include a one-time gain of $7.2m on the sale of a manufacturing joint venture and the company actually showed a loss from operations of $9.5m, or $0.16 per share, while analysts surveyed by First Call were expecting a net loss of $0.11. Results for the year-ago period include an income tax benefit of $11.2m. For the six-month period the net loss was $12.8m on revenue down 25.2% at $101.6m, against a net loss of $7.5m last year. Year-ago six-month results include one-time gains of $26.6m and an income tax benefit of $12m.
