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

To: Scott Moore who wrote (93)	4/22/1999 12:29:00 AM
From: Doc Horror	Read Replies (1) \| Respond to of 2013

Wall St. Journal to cover CNXT tomorrow ... just one more boost for the old pocketbook ... Scott, I am in at an average cost of around $23 1/4 ... I will also be looking into the crystal ball ... good luck! Here is the WSJ article ... Dow Jones Newswires -- April 21, 1999 Conexant Sees 3Q Net Up Vs 2Q On New-Business Strength>CNXT By Anthony Palazzo BUENA PARK, Calif. (Dow Jones)--Conexant Systems Inc. (CNXT) reported an earlier-than-expected return to profitability in its first quarter as an independent company, citing growth in newer businesses. Chairman and Chief Executive Dwight W. Decker issued an optimistic revenue and profit forecast for the current fiscal third quarter. After markets closed Wednesday, Conexant reported net income of $7.6 million, or 8 cents a share, on revenue of $316 million, in the fiscal second quarter ended March 31. The results compare with a loss of $15.6 million, or 16 cents a share on a pro forma basis, on revenue of $274.2 million in the year-ago quarter, when Conexant was still the semiconductor unit of Rockwell International Corp. Conexant's results bettered the First Call consensus of a loss of 1 cent a share, as well as the company's own recent forecast of a near-breakeven second quarter, with profitability on hold until the third. The company forecast, issued on March 8, was itself an improvement on its earlier outlook. In a conference call, Chairman and Chief Executive Dwight W. Decker attributed the results to revenue growth in newer businesses, higher gross margins and reductions in operating expenses. He said revenue would increase by between 5% and 10% sequentially in the fiscal third quarter, and earnings would improve sequentially as well. The results are evidence of success in a year-old initiative to expand Conexant, of Newport Beach, Calif., into markets other than personal computer modems chips. That initiative, which positions Conexant as an arms vendor for all kinds of personal communications devices, was launched during a modem-industry slump that eventually led to the spin-off from Rockwell at the end of last year. Decker said new businesses, comprising wireless communications, network access, personal imaging and "digital infotainment" divisions, contributed 53% of Conexant's revenue in the second quarter, the first time revenue from these four combined has ever exceeded the PC-modem unit. In particular, Decker praised Conexant's wireless and network access divisions, the largest of the four segments. He also said the PC-modem unit's revenue, while falling 2% sequentially, were better-than-expected. On the conference call, Chief Financial Officer Balakrishnan (Bala) S. Iyer said gross margins were helped by an improved product mix and increased factory utilization. He said Conexant's tax rate will fall to 30% for the year from previous guidance of 37%.