Wednesday, November 3, 2004

Conexant Reports $213.1 Million in Quarterly Revenue

Conexant Systems reported quarterly revenue of $213.1 million, down 20% from the previous quarter's revenues of $267.6 million and consistent with the revised outlook provided by the company of 30-September-2004.

The net loss for the quarter was $367.5 million, or $0.79 per diluted share, compared to net income of $37.2 million, or $0.12 per diluted share, for the same period in 2003. Pro forma operating loss was $9.6 million, or 4.5 percent of revenues, compared to a pro forma operating profit of $6.7 million in the year-ago quarter.

Gross margin for the fourth fiscal quarter of 2004 was 40 percent of net revenues.

"Conexant's sequential decline in revenues to $213.1 million in the fourth fiscal quarter was largely due to excess channel inventory that resulted from lower-than-expected customer demand," said Armando Geday, Conexant's chief executive officer. "As is often the case during an inventory correction, our revenue decline was exacerbated by average selling price erosion caused by an unfavorable product mix as newer, more valuable products were slower to ramp. While our visibility continues to be limited, we remain confident in Conexant's long-term prospects."


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