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Technology Stocks : Rockwell-Spins off Conexant (CNXT) -- Ignore unavailable to you. Want to Upgrade?

To: faqsnlojiks who wrote (296)	7/21/1999 11:42:00 PM
From: straight life	Respond to of 2013

Conexant Announces Sequential Revenue Growth of 20 Percent With Third-Quarter Results Expansion Business Revenues Up 35 Percent Sequentially part of: biz.yahoo.com NEWPORT BEACH, Calif.--(BUSINESS WIRE)--July 21, 1999--Conexant Systems Inc. (Nasdaq:CNXT - news) Wednesday announced revenues of $380.3 million for the third fiscal quarter ended June 30, 1999, up 20 percent sequentially over the $316.9 million in revenues reported for the second quarter of fiscal 1999. Net income for the quarter increased 220 percent to $24.4 million, or $0.24 per diluted share, compared with net income of $7.6 million, or $0.08 per diluted share, in the prior quarter. Revenues were up 37 percent over the $277.8 million in the third quarter of fiscal 1998. In the period a year ago, the company incurred a net loss of $33.4 million, or $0.34 per share on a pro-forma basis. ''With sequential increases of 20 percent in revenue and more than 200 percent in profit, we are obviously pleased,'' said Dwight W. Decker, chairman and chief executive officer of Conexant. ''We are especially gratified by the performance of our four expansion businesses: the Network Access, Digital Infotainment, Personal Imaging and Wireless Communications divisions, which in total grew 35 percent sequentially and 67 percent year-over-year. In addition, for the third quarter in a row, our Personal Computing Division delivered solid results and outperformed the market for analog modems.'' Network Access revenues were up 76 percent sequentially to $82.6 million, fueled by the continuing expansion of the worldwide Internet infrastructure. The division had record shipments across all three product segments: broadband access devices including the ZipWire(TM) digital subscriber line (DSL) family, AnyPort(TM) multi-service access chipsets, and wide area network (WAN) transport including T1/E1 and asynchronous transfer mode (ATM) solutions. Wireless Communications revenues were up 23 percent sequentially to $70.0 million, driven by unprecedented demand for power amplifiers and radio frequency products for cellular phones, and strong seasonal demand for digital spread-spectrum cordless telephone chipsets. Revenues from Digital Infotainment increased 12 percent sequentially to $47.9 million, led by demand for satellite set-top box tuners and demodulators, video encoders for DVD and set-top boxes, and video decoders for TV in the PC applications. Personal Imaging revenues were up 23 percent sequentially to $25.4 million, with strong demand for fax products, and an increasing penetration of the multifunction peripheral (MFP) market. Personal Computing revenues increased 3 percent sequentially to $154.5 million dollars, with record PC modem shipments. The growth drivers were strong sales of PC retail aftermarket products, especially in Europe and Asia, and increased demand for software-based solutions for the rapidly expanding sub-$1,000 market. ''I am enormously pleased by the performance our team has delivered this quarter. In particular, our Network Access and Wireless Communications businesses have now each surpassed a quarter-of-a- billion-dollar annualized revenue run rate. ''Our current results demonstrate the significant progress we are making in strengthening our positions in the wireline and wireless communications industry, executing on our key product development initiatives and improving our operating performance,'' Decker said. ''Based on current design wins and sales order momentum, we anticipate top line sequential growth in excess of 10 percent for the fourth quarter. More specifically, we expect aggregate sequential revenue growth to exceed 15 percent for our expansion platform businesses, with a continuation of modest sequential growth from the Personal Computing platform. ''We anticipate gross margins in the range of 43-45 percent, and expect operating expenses to remain at current levels as a percent of revenue. As a result, we expect to again deliver a sequential improvement in operating margins in the current quarter,'' Decker added. Third Quarter Product Highlights The Network Access Division introduced the ZipWire2(TM), the industry's first high-bit-rate digital subscriber line 2 (HDSL2) standard-based chipset solution delivering up to 4.6 megabits per second (Mbps) for high-speed Internet access over a single pair of telephone wires. The Wireless Communications Division commenced volume shipments of dual-band power amplifiers for Global System for Mobile Communications (GSM) digital cellular phones. It also announced the Garnet(TM) power management integrated circuit for Code Division Multiple Access (CDMA) digital cellular phones that integrates into a single device most of the power-supply functions that enable longer talk and standby times. The Digital Infotainment Division demonstrated the industry's first programmable single-chip cable modem at the National Cable Television Association trade show. InfoSurge(TM) is the most highly integrated cable modem device in the industry. The Personal Imaging Division announced that Brother Industries had selected the MFC1000 complete multifunction peripheral (MFP) system solution for its new MFC-7050C MFP product. Conexant's MFC1000 enables high-quality color inkjet printing, scan, copy, fax, voice messaging and PC-fax functionality. The Personal Computing Division announced a 1Mbps home networking Universal Serial Bus (USB) chipset solution. It also announced a home networking cross-licensing agreement with Epigram for next-generation 10 Mbps technology. Conexant Systems is the $1.2 billion company that was created when Rockwell International spun off its semiconductor systems business to shareowners in December 1998. Conexant is the world's largest independent company focused exclusively on providing semiconductor products for communications electronics.