CNXT News
DOW JONES NEWSWIRES
Conexant Systems Inc. (CNXT) again raised its fiscal fourth-quarter profit target, citing higher-than-projected profit margins.
The semiconductor firm now sees earnings for the quarter ending Friday of 24 cents to 25 cents a share, up from July's-raised 13 cents to 17 cents a share, and boosted its gross-margin forecast by 2.5 percentage points to 54% to 55%. The company still expects revenue of $120 million to $125 million.
Conexant's earnings outlook reflects results excluding items.
The company is due to release the quarter's results Oct. 30.
Conexant earlier this year agreed to sell its broadband operations related to set-top boxes for up to $145 million. As part of its realignment, the company also has been cutting costs. Chairman and Chief Executive Scott Mercer said Tuesday that Conexant is making better-than-expected progress on that front.
Shares closed Monday at $2.88, and there was no premarket trading. The stock is down more than 75% from a year ago.
-By Emily Schulman, Dow Jones Newswires; 201-938-5294; emily.schulman@dowjones.com
