Conexant Shares Bounce Back

The chipmaker is the latest firm to lower its revenue outlook for the current quarter.

Author:: TSC Staff
Publish date:: Dec 13, 2004 3:26 PM EST

Updated from 8:16 a.m. EST

Conexant Systems

shares plunged then recovered Monday after the company became the latest chipmaker to warn about its financial performance in the current quarter.

Conexant said its fiscal first-quarter revenue will be approximately $140 million, down from a November forecast of $175 million to $185 million.

The company also now expects a pro forma loss of 18 cents to 20 cents a share, wider than its earlier forecast of a loss of 6 cents to 7 cents a share. Conexant will take a $40 million to $50 million charge in the quarter ending Dec. 31.

Analysts were expecting revenue of $177 million and a loss of 6 cents a share, based on a survey by Thomson First Call.

The Newport Beach, Calif.-based company, which makes communications chips for fax machines and cell phones, cited reduced end-customer demand for DSL and wireless local-area-network products.

After the bell Wednesday,

Xilinx

(XLNX) - Get Report

and

Altera

(ALTR) - Get Report

both warned about revenue, triggering a sector-wide selloff.

Conexant shares were recently up 3 cents to $1.90 after falling as much as 17 cents a share earlier.