Conexant Systems, Inc., Newport Beach, Calif., on Wednesday announced that it expects to report lower-than-anticipated revenues for its December-ending first fiscal quarter of 2001, driven by a slowdown in worldwide demand for its personal networking products.
The company now expects revenue for the quarter to be in the range of $400 to $425 million, down approximately 20 percent from its previous outlook.
Conexant attributed the revenue shortfall to a steep drop in consumer demand and resulting excess channel inventories of personal computers, facsimile machines and satellite set-topboxes. The company also expects revenues from its Internet infrastructure business to be down modestly from the prior quarter as a result of inventory corrections at several network
Conexant anticipates that its revised revenue outlook will result in a pro forma loss per diluted share in the range of 5 to 10 cents for the first quarter, excluding the impact of
one-time costs associated with increased inventory reserves.
"Our business is clearly suffering from the recent slowdowns in demand in several of our key end markets. However, we remain confident in our long-term outlook, and we expect growth to resume once channel inventories have returned to more normal levels," said Dwight W. Decker, chairman and chief executive officer of Conexant.
"In addition, we are pleased with our progress towards the separation of Conexant into two independent companies focused on the Internet infrastructure and personal networking
Conexant will report actual results for its first fiscal quarter on Jan. 18.