Mike, I have not liked the way CNXT has traded. a great
example of a stock breaking below it's
200 DMA and then coming up and touching it before heading
lower.
geocities.com
when it hung around for days and days just beneath it's
200 DMA selling off every time it touched it...well that's
the proverbial kiss of death.
Mkt giving us second, third and fourth chances to unload
near the 200 DMA before the long descent into purgatory. -ng-
They are competing against BRCM, LU, BRCD,RFMD? and another
of the companies on our most favored list. It's like the
cross roads of the Giants and this is a Rockwell spin-off.
-ng-
But I sure would not sell here, it's a buy, not sure how
big the magnitude is. Good horizontal support at 40.
look at this, rev's down compared to Dec and only growing
at 6% to 8% for June. 10% sequential earnings growth.
Margins at 46%..... Not top tier numbers and I think
they have 5 blow-out(very strong) competitors. Hence
the adoption of their products may have an uphill run.
John
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Wednesday April 19, 9:14 pm Eastern Time
CORRECTED - Conexant second-quarter results top expectations
In NEWPORT BEACH story headlined ``Conexant first-quarter results top expectations'' please read headline as ``Conexant second-quarter results top expectations'' (Correcting quarter)
A corrected repetition follows
NEWPORT BEACH, Calif., April 19 (Reuters) - Conexant Systems Inc. (NasdaqNM:CNXT - news) on Wednesday reported net income, excluding acquisition charges, of $47 million for its second quarter, ahead of consensus estimates, driven by strong demand for its communications chips in network and television equipment.
In a statement, the company said strong demand for its semiconductor products in wireless and networking equipment was leading it to boost its outlook for earnings and revenue growth in the coming quarter and full fiscal year.
Conexant said pro forma net income for the fiscal second quarter ended March 31 was $47 million, or 21 cents per share, compared with $8.9 million, or 5 cents a share, in the year-ago period. These results excluded merger-related charges. Analysts had forecast an average of 19 cents per share, according to First Call/Thomson Financial, which compiles broker estimates.
Revenue for the quarter jumped to $502 million, up 58 percent from the year-earlier quarter's $317 million. Revenue was down slightly from the seasonally stronger first quarter ended in December, but by far less than analysts expected.
Conexant said it expected total revenues to grow in the range of 6 percent to 8 percent in the June quarter, gross margins to remain at 46 percent. It said operating profit would grow at greater than 10 percent sequentially, while for the full year, it expected $100 million in unforeseen revenue, or $2.1 billion. |
