Expects Q2 revenues to be down by approximately 35 to 40 percent from Q1 revenues of $410.4 million

March 27, 2001

1 Min Read

NEWPORT BEACH, Calif. — Conexant Systems, Inc. (NASDAQ:CNXT) today announced that it expects revenues for its March-ending second fiscalquarter to be lower than previously anticipated due to continuing weak demand andexcess channel inventory. The company also announced aggressive expense-reductioninitiatives and a comprehensive business reassessment focused on leveraging core capabilitiesand aligning resources with its highest-growth, highest-margin marketopportunities.

Conexant now expects revenues for its second fiscal quarter to be down by approximately 35-40 percent from first fiscal quarter revenues of $410.4million. Personal networking revenues are expected to be lower by approximately 25-30 percent sequentially due to continued deterioration in the digital cellular handsetand set-top box markets. The company anticipates Internet infrastructure revenues will bedown by approximately 45-50 percent sequentially, driven largely by a steep declinein its access product lines.

Based on the expected revenue level for the second fiscal quarter, thecompany anticipates a pro forma loss per diluted share of between $0.35 and $0.40,excluding the impact of one-time charges associated with expense-reduction initiatives,restructuring measures, and significant additional inventory reserves.


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