Conexant Lowers 1Q Projections12/13/2004 5:52 AM Eastern
Conexant Systems Inc. has lowered its revenue outlook for its first fiscal quarter, which ends Dec. 31, to approximately $140 million from its original projections of $175 million-$185 million.
The company said it will consume approximately $50 million in channel inventory during the quarter, as well as taking a one-time charge of $40 million-$50 million, reflecting its previous communication of lower market prices and reduced end-customer demand for digital-subscriber-line and wireless-local-area-network products.
"Conexant's lowered expectations for the first fiscal quarter are a consequence of our decision to normalize channel inventory," chairman and CEO Dwight W. Decker said in a prepared statement.
“In the second fiscal quarter, we will continue to reduce channel inventory, but at a much lower level,” he added.