Conexant Delivers on Guidance for Third Quarter

Conexant Systems, Inc.

today announced that financial results for the third quarter of fiscal 2010 met or exceeded guidance provided at the beginning of the quarter. The company also said it delivered core gross margin of 61.2 percent of revenues and core operating margin of 20.7 percent of revenues. Core operating margin was 20 percent or better for the third consecutive quarter. On a GAAP basis, net revenues for the third quarter of fiscal 2010 were $60.7 million. GAAP gross margins were 61.1 percent of revenues. GAAP operating expenses were $27.2 million. GAAP net loss including discontinued operations was $7.5 million, or $0.09 per diluted share. The company ended the quarter with $69.1 million in cash and short-term investments, compared to $187.5 million in the previous quarter. During the third fiscal quarter, the company retired $116.5 million of its convertible subordinated notes.