Conexant (CNXT) - Get Report posted a sequential decline in fourth-quarter revenue due to lower demand that boosted inventory -- a circumstance that the chip supplier said will plague results in the current quarter.
The company said after the bell Thursday that it lost $367.5 million, or 79 cents a share, compared with net income of $37.2 million, or 12 cents a share, a year earlier.
On a pro forma basis, which excludes certain items, the company lost $9.6 million, or 2 cents a share, compared with a profit of $6.7 million, or 3 cents a share.
Analysts were expecting a loss of 5 cents a share on a pro forma basis.
Revenue rose 29% to $213.1 million -- slightly above Wall Street estimates -- but reflected operations including the company's merger with GlobespanVirata. Sequentially, revenue fell 20% from the third quarter.
The results were in line with the company's lowered guidance given Sept. 30.
"Conexant's sequential decline in revenues to $213.1 million in the fourth fiscal quarter was largely due to excess channel inventory that resulted from lower-than-expected customer demand," said Armando Geday, Conexant's CEO. "As is often the case during an inventory correction, our revenue decline was exacerbated by average selling price erosion caused by an unfavorable product mix as newer, more valuable products were slower to ramp. While our visibility continues to be limited, we remain confident in Conexant's long-term prospects."
However, investors' confidence was likely shaken by the company's first-quarter guidance, which was below the current Wall Street consensus.
The company expects revenue to fall sequentially to $175 million to $185 million as a result of continued excess inventory consumption, resulting in a pro forma loss of 6 cents to 7 cents a share.
Analysts were expecting the company to lose 2 cents a share on a pro forma basis on revenue of $210.2 million.
After hours, Conexant shares fell 15 cents, or 8.5%, to $1.61.