Apr 18, 2002 Newport Beach, CA
Conexant Systems, Inc., Newport Beach, Calif., today announced revenues of $241 million for the second quarter of fiscal 2002, which ended March 29, up 5% from first quarter fiscal 2002 revenues of $229.5 million.
Results were driven by growth in each of the company's three businesses. Mindspeed Technologies, the company's Internet infrastructure business, grew 34%, and wireless communications and broadband access each delivered growth of 3% sequentially.
The pro forma net loss for the second quarter was $88.3 million, or 34 cents per share, an improvement of $19.4 million over the pro forma net loss of $107.7 million, or 42 cents per share, in the prior quarter. Pro forma results exclude amortization of intangible assets and special charges.
Net loss for the quarter was $200.7 million, compared to $204.5 million in the previous quarter and $262 million in the same quarter of 2001.
"Conexant's second fiscal quarter performance exceeded expectations on both the top and bottom lines," said Dwight W. Decker, chairman and chief executive officer, in a released statement.
"We delivered sequential growth in all three businesses in a period that is traditionally weak for our addressed markets, and we improved the level of our pro forma operating loss by 20 percent sequentially, compared to the 10 percent reduction we anticipated at the beginning of the quarter.
"Entering the quarter, we communicated our expectations for a 10 percent increase in Mindspeed revenues. Actual sequential growth of 34 percent indicates that this business is now positioned solidly on its path to recovery. We are also very pleased that our wireless communications and broadband access businesses grew for a third consecutive quarter."
Mindspeed revenue growth was driven by increased demand across its entire portfolio of Internet access and wide area network transport products, the company said.
"Following our solid performance in a seasonally weak March quarter, we expect all three Conexant businesses to again grow sequentially," Decker said.
"In particular, we believe that our Mindspeed business will continue its recovery with a sequential revenue growth of at least 10 percent, driven primarily by demand for products addressing network edge and metropolitan area network applications.
"We expect the growth in our broadband access business will be led by increased ADSL and cable modem demand, while our growth in wireless communications will be driven by demand for our power amplifier, radio frequency, and cellular system solutions.
"In total, we expect Conexant's third fiscal quarter revenues to grow 3 to 5 percent sequentially.
"From an operations perspective, we anticipate that gross margin will continue to improve to approximately 38 percent, and we expect a further sequential improvement of 15 percent in the level of our pro forma operating loss," Decker concluded.
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