Conexant Lowers 1Q Projections


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.