Updated from 8:16 a.m. EST
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,
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.