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

To: Neil H who wrote (1930)	4/19/2001 9:25:02 PM
From: The Ox	Read Replies (1) \| Respond to of 2013

Conexant revenues fall 39% in first quarter EBN (04/19/01, 05:25:55 PM EST) Conexant Systems, Inc. today announced revenues of $251.0 million for the second quarter of fiscal 2001, which ended March 31, 2001. Revenues were down 39% from first quarter fiscal 2001 revenues of $410.4 million, and in line with the company's revised March outlook. The pro forma net loss for the second quarter was $187.5 million, or 77 cents per share, compared with a pro forma net loss of $57.4 million, or 24 cents per share in the prior quarter. The pro forma net loss for the second quarter of fiscal 2001 includes a pre-tax charge for inventory reserves of $148.6 million. Excluding this inventory charge, the second-quarter pro forma net loss was $95.0 million, or 39 cents per share, and within the range of the company's revised March outlook. Pro forma resultsexclude amortization of intangible assets and special charges. "Conexant's second fiscal quarter results reflect the broad slowdown in the technology sector, particularly in the networking equipment market, and abnormally high customer inventory levels," said Dwight Decker, Conexant's chairman and chief executive officer, in a prepared statement. "In our personal networking business, comprised of wireless communications, digital infotainment, personal imaging, and personal computing, we experienced continued weakness across all of our end-market segments. "In Mindspeed Technologies, our Internet infrastructure business, we experienced a steep revenue decline across our access product lines and, to a lesser extent, in wide area networking products." In the second fiscal quarter, Conexant's personal networking business recorded revenues of $169.7 million, down 31% sequentially. Mindspeed Technologies delivered revenues of $81.3 million during the second fiscal quarter, down 51% sequentially. "As a result of these reduced revenue levels, we are implementing a series of previously announced cost-reduction initiatives and strategic restructuring actions," Decker said. "The many uncertainties of the current business environment make it particularly difficult to provide an outlook for our third fiscal quarter," Decker said. "However, in our personal networking business we are seeing early signs of a firming in demand for our mobile communications, personal computer and PC peripheral products. As a result, we expect that personal networking revenues for the current quarter will be flat to slightly down from the previous quarter. "On the Mindspeed side, we are not yet seeing signs of a market stabilization, and we continue to experience order push-outs and cancellations, as well as delays in the ramp of new customer platforms. In our WAN transport product lines we expect revenues to decline by 25 to 35 percent from the prior quarter," Decker said. "In our access product lines, we expect the decline to be steeper as a result of exceptionally high channel inventory levels. Accordingly, we expect Mindspeed revenues overall to be down 35 to 45 percent from the prior quarter. In total, we expect Conexant revenues for the current quarter to decline by approximately 15 percent sequentially." The company anticipates gross margins of approximately 20% in the current quarter as a result of a lower component of Mindspeed revenue and lower levels of manufacturing utilization. Pro forma loss per share is expected to be 40 to 45 cents, excluding the impact of one-time charges associated with the previously announced expense-reduction initiatives and restructuring activities.