Wednesday October 18, 5:08 pm Eastern Time
Conexant Q4 meets expectations, sees sales falling
NEWPORT BEACH, Calif. Oct 18 (Reuters) - Modem chip maker Conexant Systems Inc. (NasdaqNM:CNXT - news) on
Wednesday met analysts expectations in its fourth quarter earning report, but forecast lower revenues for the next quarter due to
slipping demand.
Pro forma net income for the quarter rose to $43.5 million, or 18 cents per diluted share, compared with $39.4 million, or 18 cents a share, in the year-ago quarter.
That number included amortization of intangible assets and special charges.
Conexant met Wall Street analysts' average forecasts that the Newport Beach, Calif-based company would post earnings of 18 cents, according to First Call/Thomson
Financial.
Revenues were seen falling in the next quarter amid slipping demand for cellular phones and personal computers, the company said.
``We are entering the first quarter of fiscal 2001 with a clear market environment of weakening demand in digital cellular handsets and consumer PCs,'' Dwight
Decker, chairman and chief executive, said in a news statement.
He forecast a 5 to 7 percent decline sequentially in revenues, with gross margins maintained in the range of 46 to 47 percent. Operating expenses were seen
increasing, for margins in the range of 6 to 8 percent. |
