Conexant Systems said quarterly revenues grew 16% sequentially to $197.5 million, compared to previous expectations of $190 million. Conexant also achieved its targeted gross margin and operating-expense improvements during the quarter. As a result, the company reduced its third fiscal quarter net loss by more than 50% sequentially.
Gross margins in the third fiscal quarter increased to 38 percent of revenues from 35.3 percent in the prior quarter. The core net loss for the quarter of 2005 was $17.6 million, or $0.04 per diluted share, better than the company’s previous guidance for a loss of $0.05 per diluted share.
“During Conexant’s third fiscal quarter, the pace of our recovery accelerated and we were able to exceed our prior performance expectations,” said Dwight W. Decker, Conexant chairman and chief executive officer. “In DSL, we saw greater-than-expected demand, with revenues growing more than 20 percent… During the quarter, we generated significant customer interest with the introduction of a family of highly integrated ‘triple-play’ VDSL and VDSL2 next-generation semiconductor solutions for both central office and customer premises equipment applications… Our Broadband Media Processing business revenues were up more than 15 percent, due in part to initial shipments for a new DIRECTV set-top box application.”http://www.conexant.com
