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shares surged more than 35% Tuesday after the chipmaker boosted its earnings estimates for the current quarter.

The Newport Beach, Calif., company said a "richer-than-anticipated product mix" as well as better-than-expected progress cutting costs have bolstered its profit margins during the quarter, resulting in gross margins between 54% and 55% instead of the 51.5% to 52.5% range it previously expected.

Net income is now expected to range between $19 million and $20 million, instead of $14 million to $16 million, with EPS between 24 cents and 26 cents, vs. the 13 cents to 17 cents it initially guided to.

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Conexant said sales in the fiscal fourth quarter, which ends October 3, are still expected to be within its previously-guided range of $120 million to $125 million.

Analysts polled by Thomson Reuters expected Conexant to earn 15 cents on $122.7 million in sales.

The news comes as Conexant seeks to revive its fortunes by reorganizing its product lines and focusing on selling chips for broadband access and PC multimedia applications. In August, the company sold its set-top TV chip business to NXP for $110 million.

A few months prior to that, Conexant ousted the CEO that had been leading the turnaround efforts, after less than a year on the job, replacing him with board member Scott Mercer.

Shares of Conexant were up $1.02 at $3.90 in midday trading Tuesday.

Even after Tuesday's jump, Conexant's stock is still trading below its adjusted level in June, when it enacted a 1-for-10 reverse stock split.

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