Conexant Systems reported revenues of $251.6 million for its third fiscal quarter of 2006, which ended 30-June-2006. up 3.7 percent from second quarter fiscal 2006 revenues of $242.6 million, in line with prior expectations of a 3 to 5 percent sequential increase and up 27.4 percent from $197.5 million in the third quarter of fiscal 2005. Core gross margins in the third quarter of fiscal 2006 increased to 45.2 percent of revenues, up 170 basis points from 43.5 percent in the immediate-prior quarter and above prior expectations of approximately 44 percent.
Core operating income in the third quarter of fiscal 2006 was $25.5 million, a sequential increase of 31.7 percent from second quarter fiscal 2006 core operating income of $19.3 million and above prior expectations for a sequential improvement of approximately 15 percent.
“In our third fiscal quarter, we once again exceeded our overall performance expectations,” said Dwight W. Decker, Conexant chairman and chief executive officer. “Most importantly, we delivered on our highest-priority goal, established 18 months ago, which was to return to double-digit core operating margins before the end of calendar 2006.
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