Conexant Raises Earnings Outlook for Fourth Fiscal Quarter

Conexant Systems, Inc. (NASDAQ: CNXT) today announced that core operating income and core net income for the fourth quarter of fiscal 2008 will exceed the guidance provided by the company on July 31, 2008. The company also said it expects fourth fiscal quarter revenues to be within the range provided in July, which was $120 million to $125 million.

“When we established expectations for the fourth fiscal quarter two months ago, we anticipated non-GAAP core operating income in a range between $14 million and $16 million, and core net income of $0.13 to $0.17 per share,” said Scott Mercer, Conexant’s chairman and chief executive officer. “At that time, we expected core gross margins of 51.5 percent to 52.5 percent of revenues. Because of a richer-than-anticipated product mix, we now expect core gross margins of 54 percent to 55 percent. During the quarter, our team also made better-than-expected progress reducing core operating expenses.