MANHASSET, N.Y. Reeling from rising channel inventories in Asia, Conexant Systems Inc. (Red Bank, N.J.) announced Thursday (September 30) that it expects revenue for its fourth fiscal 2004 quarter ending October 1 to range from $210 million to $215 million, lower than the $250 million to $255 million originally forecast in July.
Conexant also expects to post a pro-forma loss of 1 to 2 cents per share, falling short of analysts' estimates of earnings of 0 to 2 cents per share. Gross margin is projected to be at the low end of the 40 to 42 percent range originally forecast.
"Conexant's lowered fourth fiscal quarter expectations are a direct result of excess channel inventory in our service-provider and PC-related businesses," said Armando Geday, Conexant's chief executive, in a statement. "Ongoing softness in customer demand, reduced product lead times and price erosion also resulted in weakness in our turns business. "
Slumping global sales and soaring inventories have forced other semiconductor suppliers selling to the communications market, including Exar and Mindspeed, to reduce their guidance for the current fiscal quarter.