Sunday, December 12, 2004

Conexant to Reduce Channel Inventory, Lowers Guidance

Conexant Systems announced actions to reduce its channel inventory by $50 million during its first fiscal quarter, which ends Dec. 31, 2004. As a result of this new inventory initiative, Conexant now anticipates that first fiscal quarter revenues will be approximately $140 million. In November, the company expected revenues between $175 million and $185 million.

The company also said that its current-quarter results will include a one-time charge against earnings in the range of $40 million to $50 million, reflecting its previous communication of lower market prices and reduced end-customer demand for DSL and wireless LAN products.


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