MANHASSET, N.Y. Broadband communications semiconductor company Conexant Systems Inc. reported net earnings of $50.1 million, or 10 cents per share on revenue of $214.9 million in its fourth fiscal 2005 quarter ended September, compared with a net loss of $370.5 million, or 79 cents per share on sales of $213.1 million in the year-ago quarter.
In July, Conexant (Newport Beach, Calif.) said it expected to reduce its core net loss to 2 cents per share in the fourth fiscal quarter.
Gross margins increased to 40 percent from 38 percent the prior quarter, and operating expenses dropped from $113.7 million to $99.7 million sequentially.
For fiscal 2005, Conexant saw sales of $722.7 million, down 20 percent from $901.9 million in fiscal 2004. The net loss for fiscal 2005 was $176.0 million or 37 cents per diluted share, compared to a fiscal 2004 net loss of $544.6 million or $1.40 per share.
"For Conexant, fiscal 2005 was a year of recovery," said Dwight W. Decker, Conexant chairman and chief executive, in a statement. "We stabilized our business, and we made major progress against key goals. Most importantly, we delivered core net income profitability a quarter ahead of schedule."
For the first fiscal 2006 quarter ending December, Conexant expects revenue to rise 5 percent to $225 million.