CNXT: Shares Rise on Q3 Earnings Report and Increased Q4 Guidance
Submitted By Knobias ClipReport
By Fain Hughes, fhughes@knobias.com
Shares of Conexant Systems Inc. (CNXT) were higher on Friday after the Company announced financial results for the third quarter of fiscal 2008 that exceeded the Company’s expectations entering the quarter.
Excluding results from discontinued operations related to the BMP business, Conexant’s core net revenues for the third quarter of fiscal 2008 were $115.6 million. Core gross margins were 50.6 percent of revenues. Core operating expenses were $46.0 million, and core operating income was $12.5 million. Core net income was $6.0 million, or $0.12 per diluted share. That beat analysts’ projection of a loss of $0.08 per share and lsst year’s loss of $0.06 per share.
The Company now expects revenues for the fourth fiscal quarter to be in a range between $120 million and $125 million, up $5 million from previous guidance. The Company anticipates fourth fiscal quarter core operating income in a range between $14 million and $16 million, resulting in core net income of $0.13 to $0.17 per share. Previously, the Company expected core net income of $0.08 to $0.12 per share.
Scott Mercer, Conexant’s CEO, commented in a conference call, “In Q3, we met or exceeded our expectations on every major financial performance metric. We also introduced innovative new products that targeted high-growth market segments. Our strategy is to focus investments on opportunities in market segments where we lead, or have the opportunity to lead, and establish a long term sustainable capital structure.”
