Reiterates Buy Rating, Raises Estimates on CNXT
Wednesday June 9, 11:02 am Eastern Time
Company Press Release
SOURCE: BancBoston Robertson Stephens
SAN FRANCISCO, June 9 /PRNewswire/ -- The following is being issued by BancBoston Robertson Stephens, a member of the National Association of
Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens senior communications and semiconductor device analyst Arun Veerappan today reiterated his Buy rating and raised estimates on
Conexant Systems Inc. (Nasdaq: CNXT - news) after the company pre-announced expectations for above-expected third quarter fiscal 1999 financial results.
''We believe Conexant is executing ahead of expectations for the following reasons:
1. Its PC modem business is performing ahead of expectations as the
company has benefited from market share gains, as well as from
slower-than-expected conversion from higher ASP hard-wired products to
lower ASP controller-less modem products.
2. Its network access business is expected to grow substantially (up
40%+ sequentially) due to increased adoption of its Anyport product
for use by customers in modem access concentrators in the central
office," said Veerappan.
''Strong performance in the company's core businesses, combined with the above two events, is expected to boost profitability on a sequential basis as well. As
such, we anticipate that gross margin can improve by almost 200 basis points sequentially, to reach the 43 percent level for the June quarter, and the September
quarter also appears bright,'' said Veerappan. ''Consequently, we are raising our fiscal 1999 and fiscal 2000 earnings per share estimates, from $0.31 to $0.53 and
from $0.74 to $0.90, respectively.''
Clients interested in receiving more information should contact their salesperson at 415-781-9700.
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SOURCE: BancBoston Robertson Stephens |
