Conexant Pinched by Demand Dropoff

It warns of a sales shortfall in its fiscal second quarter.
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Conexant (CNXT) - Get Report says a big drop in demand caused a sales shortfall in its fiscal second quarter.

The Newport Beach, Calif., communications-chip maker expects to post revenue of $200 million for the most recent quarter, well below the $245 million in the prior period and less than the $223 million analysts were looking for, according to Reuters Research.

The company says it will break even on an operating basis in the quarter. Analysts were looking for adjusted income to break even. Conexant expects to provide an earnings report on April 26.

"During the second fiscal quarter, in addition to anticipated seasonal weakness in our PC-related products, we saw greater-than-expected sequential revenue declines in our set-top box, multifunction peripheral and DSL product lines," CEO Dwight Decker said in a press release Monday.

Conexant shares fell 9 cents to $1.56 in premarket trading.