Conexant 3Q07 Update
Q3’07 revenues for Conexant were $183.9 million, up by 2.4% q-o-q. This includes one time royalty of around $4 million related to an existing license agreement. Segment revenue shares remained same as 2Q07, with Imaging and PC Media contributing 40%, Broadband Access 30%, Broadband Media processor 25% and the Embedded Wireless Network 5%.
Majority of the shipments were seen in DSL and SD STB in the communications segment. As of this quarter the total DSL port shipments were around 250,000.
Around 89% of the quarter’s revenues came from Asia-Pacific region. Americas contributed around 6% and the EMEA revenues were 5%.
Conexant took some fiscal tightening measures and liquidated some of non-core assets in the form of equity stake in Skyworks and Jazz technologies. It sold around 6.2 million shares of Skyworks for around $50.4 million and about 1.7 million shares of Jazz Technologies for $4.2 million. The company also made headcount reductions of around 20% world wide. It also decided to stop further investments in “stand-alone†products for wireless networking. However it will continue to support DSL gateway solutions that incorporate wireless networking capability. With this, around 140 positions will be eliminated and wireless division will be maintaining staff to the level for only supporting the existing customers. The company expects savings of about $5 million each quarter with this measure.
Conexant announced Single-chip 802.11n draft 2.0 product family for WLAN applications. These chips CX53322 and CX53328 are targeted mainly at products with embedded WiFi functionality. It also announced that China based DareGlobal has selected its standard definition MPEG-2 decoders for two new Cable STB receivers. Conexant’s HDTV Video Decoders (CX2427X dual-channel video decoder) also won ‘Best Silicon Innovation’ in the Annual Cable and Satellite Award Competition.
On the management side Karen Roscher joined as SVP and CFO. She joins the company from Freescale.
