Conexant 2Q07 update

• Conexant Q2’07 revenues were $179.5 million, down by 10.2% compared to Q1'07.
• Imaging and PC Media contributed 40%, Broadband Access 30%, Broadband Media processor 25% and the remaining 5% came from Embedded Wireless Network.
• The primary cause of decrease in revenues was due to some specific and generic changes in Broadband Media Processing segment. There was discontinuation of cable STB product program by a major customer. Besides, there was around 22% decrease in average selling prices and an 8% decrease in unit volume shipments. • Geographically, 83.28% of revenues were realized from Asia-Pac of which 68.70 ($102.73m) came from China only. Americas contributed 9.43% and EMEA measured for 7.29% of the total revenues for 2Q'07.
• The company had no customer accounting for 10% of revenues, however, around 20 customers contributed 65% of the revenues for the quarter. One distributor customer realized 10% of revenues for Conexant.
• Conexant announced some routine new designs during the quarter. Only significant product announcement was the availability of SoC for Fiber Optic Gateway. Colorado based EchoStar Communications, DBS providers, started shipping ViP222™ based HDTV STB which is all developed over Conexant platform.
• There was also change in the management. Dwight Decker got replaced by Daniel Artusi as President and CEO. Dwight will continue as non-executive chairman.