Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?

To: drsvelte who wrote (11539)	1/20/2000 1:29:00 PM
From: drsvelte	Read Replies (1) \| Respond to of 14427

CNXT Bear Stearns' analyst Charles Boucher published a new report on CNXT this morning. Key points include: * Conexant posted a strong quarter beating our (and consensus) estimates of $0.20 with EPS of $0.24. Revenues were $510 million, up 12.8% sequentially. Gross margin was down modestly from the previous quarter to 45.6%. Operating margin was 14.9%, up sharply by 370 basis points from the previous quarter. * Strength was exhibited by all divisions, including Network Access, Personal Imaging, Personal Computing, and Digital Infotainment which all experienced double-digit growth. Geographically, Europe and Asia-Pacific regions led the way with very strong growth. * Conexant also announced the acquisition of the broadband wireless business unit of Oak Technology. The transaction valued at approximately $25 million, gains Conexant access to the digital terrestrial TV and set-top box market. * The outlook is positive as Conexant is executing very well and is benefiting from a variety of strong end markets. The company expects some seasonal revenue decline in the March quarter but is confident that it will outgrow the semiconductor industry in C 00. *** We are adjusting our estimates for F 00 from $0.77 to $0.91 and for F 01 from $1.07 to $1.20. We believe that continued strong execution and growth in end markets leaves room for upside to these estimates. We reiterate our Buy rating and we are raising our 12-month target price to $115.