To listen via the Internet, visit the Investor Relations section of Conexant's Web site at www.conexant.com/ir. Playback of the conference call will be available shortly after the call concludes and will be accessible on Conexant's Web site at www.conexant.com/ir or by calling 800-642-1687 (in the U.S. and Canada) or 706-645-9291 (from other international locations); pass code: 68166163.
About Conexant
Conexant’s comprehensive portfolio of innovative semiconductor solutions includes products for imaging, video, audio, and Internet connectivity applications. Conexant is a fabless semiconductor company that recorded revenues of more than $500 million in fiscal year 2008. The company is headquartered in Newport Beach, Calif. To learn more, please visit www.conexant.com
Safe Harbor Statement
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as Conexant or its management “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. Similarly, statements in this release that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.
These risks and uncertainties include, but are not limited to: pricing pressures and other competitive factors; our ability to timely develop and implement new technologies and to obtain protection for the related intellectual property; the cyclical nature of the semiconductor industry and the markets addressed by our products and our customers’ products; volatility in the technology sector and the semiconductor industry; our successful development of new products; the timing of our new product introductions and our product quality; demand for and market acceptance of our new and existing products; our ability to anticipate trends and develop products for which there will be market demand; the availability of manufacturing capacity; changes in our product mix; product obsolescence; the ability of our customers to manage inventory; the risk that capital needed for our business and to repay our indebtedness will not be available when needed; the risk that the value of our common stock may be adversely affected by market volatility; the substantial losses we have incurred; the uncertainties of litigation, including claims of infringement of third-party intellectual property rights or demands that we license third-party technology, and the demands it may place on the time and attention of our management and the expense it may place on our company; general economic and political conditions and conditions in the markets we address; and possible disruptions in commerce related to terrorist activity or armed conflict, as well as other risks and uncertainties, including those detailed from time to time in our Securities and Exchange Commission filings.
The forward-looking statements are made only as of the date hereof. We undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Conexant is a registered trademark of Conexant Systems, Inc. Other brands and names contained in this release are the property of their respective owners.
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CONEXANT SYSTEMS, INC. GAAP Condensed Consolidated Statements of Operations (unaudited, in thousands, except per share amounts) |
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Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| October 3, | June 27, | September 28, | October 3, | September 28, | ||||||||||||||||
| 2008 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||
| Net revenues | $ | 122,615 | $ | 115,594 | $ | 138,933 | $ | 502,660 | $ | 573,576 | ||||||||||
| Cost of goods sold | 56,300 | 57,186 | 72,836 | 233,779 | 295,464 | |||||||||||||||
| Gross margin | 66,315 | 58,408 | 66,097 | 268,881 | 278,112 | |||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Research and development | 29,279 | 27,410 | 42,369 | 125,162 | 173,520 | |||||||||||||||
| Selling, general and administrative | 21,008 | 24,700 | 22,941 | 86,146 | 91,429 | |||||||||||||||
| Amortization of intangible assets | 4,455 | 3,629 | 4,574 | 15,514 | 21,259 | |||||||||||||||
| Asset impairments (Note 1) | 22 | 120,617 | 67,698 | 120,769 | 226,113 | |||||||||||||||
| Special charges | 2,393 | 8,425 | 25,302 | 17,631 | 30,397 | |||||||||||||||
| Total operating expenses | 57,157 | 184,781 | 162,884 | 365,222 | 542,718 | |||||||||||||||
| Operating income (loss) | 9,158 | (126,373 | ) | (96,787 | ) | (96,341 | ) | (264,606 | ) | |||||||||||
| Interest expense | 6,852 | 6,669 | 9,205 | 31,598 | 40,783 | |||||||||||||||
| Other expense (income), net | 3,352 | (9,036 | ) | (9,771 | ) | 3,809 | (36,148 | ) | ||||||||||||
| Loss before income taxes and (loss) gain of equity method investments |
(1,046 |
) |
(124,006 |
) |
(96,221 |
) |
|
(131,748 |
) |
(269,241 |
) |
|||||||||
| Provision for income taxes | 373 | 2,466 | 1,383 | 4,418 | 3,131 | |||||||||||||||
|
Loss from continuing operations before (loss) gain of equity method investments |
(1,419 |
) |
(126,472 |
) |
(97,604 |
) |
|
(136,166 |
) |
(272,372 |
) |
|||||||||
| (Loss) gain of equity method investments (Note 2) | (808 | ) | 53 | 6,988 | 2,804 | 51,182 | ||||||||||||||
| Loss from continuing operations | (2,227 | ) | (126,419 | ) | (90,616 | ) | (133,362 | ) | (221,190 | ) | ||||||||||
| Gain on sale of discontinued operations, net of tax | 6,268 | — | — | 6,268 | — | |||||||||||||||
| Loss from discontinued operations, net of tax (Notes 3) | (3,670 | ) | (23,452 | ) | (144,149 | ) | (173,628 | ) | (181,272 | ) | ||||||||||
| Net income (loss) | $ | 371 | $ | (149,871 | ) | $ | (234,765 | ) | $ | (300,722 | ) | $ | (402,462 | ) | ||||||
| Basic and diluted net loss per share from continuing operations (Note 4) |
$ |
(0.04 |
) |
$ |
(2.56 |
) |
$ |
(1.84 |
) |
$ |
(2.70 |
) |
$ |
(4.52 |
) |
|||||
| Basic and diluted net gain per share from sale of discontinued operations (Note 4) |
$ |
0.13 |
$ |
— |
$ |
— |
$ |
0.13 |
$ |
— |
||||||||||
| Basic and diluted net loss per share from discontinued operations (Note 4) |
$ |
(0.08 |
) |
$ |
(0.47 |
) |
$ |
(2.93 |
) |
$ |
(3.52 |
) |
$ |
(3.70 |
) |
|||||
| Basic and diluted net income (loss) per share (Note 4) |
$ |
0.01 |
$ |
(3.03 |
) |
$ |
(4.77 |
) |
$ |
(6.09 |
) |
$ |
(8.22 |
) |
||||||
| Shares used in basic and diluted per-share computations Basic |
49,565 |
49,450 |
49,177 |
49,394 |
48,940 |
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| Diluted | 49,994 | 49,450 | 49,177 | 49,653 | 49,940 | |||||||||||||||
