Tech Mover: Conexant Raises Revenue Guidance

Conexant Systems

(CNXT) - Get Report

raised its first-quarter guidance, saying it now expects revenue to grow 10% over the $201 million reported in the fourth quarter. Originally, the company had expected an increase of 5% to 7%.

The microchip maker said the revenue growth was due to a 35% growth in its wireless communications division and stronger-than-expected broadband revenue.

The company also announced firm plans to enter into an agreement with

Alpha Industries

(AHAA)

to combine their wireless businesses. Conexant shareholders are expected to own 67% of the $3 billion combined company.

Shares of Conexant were recently trading up 7.2% to $17 in Instinet premarket trading after closing at $15.77 on the Nasdaq.