Thursday, October 26, 2006

Conexant's STB Business Records 5th Consecutive Quarter of Double-Digit Growth

Conexant Systems reported revenues of $245.9 million for its fourth fiscal quarter, within the guidance range communicated at the beginning of the quarter, down 2.3 percent from third quarter fiscal 2006 revenues of $251.6 million, and up 14.4 percent from $214.9 million in the fourth quarter of fiscal 2005. Core gross margins in the fourth quarter of fiscal 2006 increased to 45.8 percent of revenues. Core operating income in the fourth quarter of fiscal 2006 was $20.7 million, compared to third quarter fiscal 2006 core operating income of $25.5 million.

Fiscal 2006 was another year of significant progress for Conexant," said Dwight W. Decker, Conexant chairman and chief executive officer. "Year-over-year revenues increased 34 percent, we achieved our highest-priority goal of delivering 10 percent core operating margins in the third fiscal quarter, two quarters ahead of schedule, and we remained solidly profitable on a core basis exiting the year. We also improved core gross margins as a percent of revenues by more than five points during the year."

Among the highlights, Conexant's Broadband Media Processing business, and its set-top box business, achieved record revenues and have now delivered five quarters of sequential double-digit revenue growth.