Published: July 29, 2010
Conexant Delivers on Guidance for Third Quarter of Fiscal 2010
NEWPORT BEACH, Calif. - (BUSINESS WIRE) - Conexant Systems, Inc. (NASDAQ:CNXT) 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.
Third Fiscal Quarter Financial Results
Conexant presents financial results based on Generally Accepted
Accounting Principles (GAAP) as well as select non-GAAP financial
measures intended to reflect its core results of operations. The company
believes these core financial measures provide investors with additional
insight into its underlying operating results. Core financial measures
exclude certain non-cash and other non-core items as fully described in
the GAAP to non-GAAP reconciliation in the accompanying financial data.
For the third quarter of fiscal 2010, Conexant core revenues were $60.7
million. Core gross margins were 61.2 percent of revenues. Core
operating expenses were $24.6 million, core operating income was $12.6
million, and core net income was $6.6 million, or $0.08 per diluted
share, based on an average of 82 million shares outstanding during the
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.
Financial Performance and Business Perspective
"For the third fiscal quarter, the Conexant team again delivered
performance that met or exceeded our expectations on all key financial
metrics," said Scott Mercer, Conexant's chairman and chief executive
officer. "Third fiscal quarter revenues of $60.7 million were above the
midpoint of what we anticipated entering the quarter. Third quarter core
gross margin of 61.2 percent was 20 basis points better than we
expected, and core operating expenses of $24.6 million were less than we
anticipated. Core operating income of $12.6 million exceeded the high
end of our expectations and represented 20.7 percent of revenues. Core
net income was $6.6 million, or $0.08 per share, better than the $0.05
to $0.06 per share we anticipated.
"During the quarter we retired another $116.5 million of our convertible
subordinated notes due in 2026 but 'puttable' in March 2011, which
completes the financial restructuring of our company," Mercer said. "In
the prior quarter, we successfully executed new debt and equity
transactions designed to raise the capital required to retire our
convertible debt.
"With our capital-structure issues resolved, we are focused on capturing
market share with existing products and delivering new solutions for
imaging, audio, embedded modem, and video surveillance applications,"
Mercer said. "In the third fiscal quarter our imaging and audio
businesses, where we have focused the majority of our investment
resources, grew 7.4 percent on a sequential basis and accounted for 58
percent of our total revenues."
Fourth Fiscal Quarter Business Outlook
"While we expect our non-legacy businesses to remain flat on a
sequential basis in the fourth quarter, we anticipate that a significant
sequential decline in our legacy businesses will impact total revenues,"
Mercer said.
Conexant expects revenues for the fourth quarter of fiscal 2010 to be
$56 million to $57 million. Core gross margins are expected to be 60 to
61 percent of revenues. The company anticipates that core operating
expenses will be $24 million to $25 million. As a result, the company
expects that fourth fiscal quarter core operating income will range
between $9 million and $10 million, with core net income of $0.04 to
$0.05 per share based on approximately 82 million shares outstanding.
Conference Call Today
Financial analysts, members of the media, and the public are invited to
participate in a conference call that will take place today at 5:00 p.m.
Eastern Time (ET)/ 2:00 p.m. Pacific Time (PT). Conexant senior
management will discuss third quarter fiscal 2010 financial results and
the company's outlook. To listen to the conference call via telephone,
dial 866-650-4882 (in the U.S. and Canada) or 706-679-7338 (from other
international locations); participant pass code: Conexant; Conference ID
number: 86818739.
To listen via the Internet, visit the Investor Relations section of
Conexant's Web site at http://ir.conexant.com.
Shortly after the call concludes, a playback of the call will be
accessible on Conexant's Web site at www.conexant.com
or by calling 800-642-1687 (U.S. and Canada) or 706-645-9291 (other
international locations); conference ID: 86818739.
About Conexant
Conexant's portfolio of innovative semiconductor solutions includes
products for imaging, audio, embedded modem, and video surveillance
applications. Conexant is a fabless semiconductor company headquartered
in Newport Beach, Calif. To learn more, please visit www.conexant.com.
Safe Harbor
"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 are also
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: our narrower, less diversified and more focused portfolio of
products as a result of our recent restructuring activities; the risks
of doing business internationally; the highly cyclical nature of the
semiconductor industry, which is subject to significant downturns that
may negatively impact our business, financial condition, cash flow, and
results of operations; our limited visibility into customer demand and
our ability to accurately forecast future demand for our products; the
intense competition we face in the markets we operate in; the cyclical
nature of the markets addressed by our products and our customers'
products; volatility in the technology sector and the semiconductor
industry; the loss of a key customer or a significant reduction in or
cancellation of purchases by any key customers; the timing of our new
product introductions and our product quality; demand for and market
acceptance of our new and existing products to offset declines in our
legacy products; the risk that our research and development expenditures
might not lead us to achieve anticipated sales volume for new products;
our ability to anticipate trends and develop products for which there
will be market demand; product obsolescence; changes in our product mix;
pricing pressures and other competitive factors; our ability to timely
develop and implement new technologies and to obtain protection for the
related intellectual property; our successful development of competitive
new products; future impairment of our goodwill and intangible assets;
the financial risks of default by tenants and subtenants in the space we
own or lease; the ability of our customers to manage inventory; the
availability of manufacturing capacity; 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; our history of substantial GAAP
losses; our ability to use our substantial net operating losses to
offset future taxable income general economic and political conditions
and conditions in the markets we address; 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 SYSTEMS, INC.
GAAP Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share amounts)
|
|
|
|
|
|
|
|
Fiscal Quarter Ended
|
|
Nine Fiscal Months Ended
|
|
|
July 2,
2010
|
|
April 2,
2010
|
|
July 3,
2009
|
|
July 2,
2010
|
|
July 3,
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
$
|
60,730
|
|
|
$
|
61,868
|
|
|
$
|
50,844
|
|
|
$ 184,411
|
|
|
$
|
152,272
|
|
|
Cost of goods sold
|
|
23,645
|
|
|
|
24,087
|
|
|
|
20,533
|
|
|
71,936
|
|
|
|
64,409
|
|
|
Gross margin
|
|
37,085
|
|
|
|
37,781
|
|
|
|
30,311
|
|
|
112,475
|
|
|
|
87,863
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
14,569
|
|
|
|
14,100
|
|
|
|
12,450
|
|
|
41,914
|
|
|
|
38,783
|
|
|
Selling, general and administrative
|
|
11,647
|
|
|
|
12,681
|
|
|
|
14,813
|
|
|
36,730
|
|
|
|
49,739
|
|
|
Amortization of intangible assets
|
|
285
|
|
|
|
284
|
|
|
|
690
|
|
|
965
|
|
|
|
2,547
|
|
|
Gain on sale of intellectual property
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
(12,858
|
)
|
|
Special charges (credits) (Note 1)
|
|
723
|
|
|
|
(210
|
)
|
|
|
1,060
|
|
|
859
|
|
|
|
13,653
|
|
|
Total operating expenses
|
|
27,224
|
|
|
|
26,855
|
|
|
|
29,013
|
|
|
80,468
|
|
|
|
91,864
|
|
|
Operating income (loss)
|
|
9,861
|
|
|
|
10,926
|
|
|
|
1,298
|
|
|
32,007
|
|
|
|
(4,001
|
)
|
|
Interest expense (Note 2)
|
|
7,159
|
|
|
|
7,775
|
|
|
|
8,449
|
|
|
24,437
|
|
|
|
25,708
|
|
|
Other expense (income), net
|
|
9,248
|
|
|
|
(7,755
|
)
|
|
|
(3,567
|
)
|
|
(5,711
|
)
|
|
|
(3,455
|
)
|
|
(Loss) income from continuing operations before income taxes and
(loss) income on equity method investments
|
|
(6,546
|
)
|
|
|
10,906
|
|
|
|
(3,584
|
)
|
|
13,281
|
|
|
|
(26,254
|
)
|
|
Income tax provision
|
|
322
|
|
|
|
331
|
|
|
|
176
|
|
|
423
|
|
|
|
819
|
|
|
(Loss) income from continuing operations before (loss) income on
equity method investments
|
|
(6,868
|
)
|
|
|
10,575
|
|
|
|
(3,760
|
)
|
|
12,858
|
|
|
|
(27,073
|
)
|
|
(Loss) income on equity method investments
|
|
(130
|
)
|
|
|
209
|
|
|
|
(485
|
)
|
|
(375
|
)
|
|
|
(2,166
|
)
|
|
(Loss) income from continuing operations
|
|
(6,998
|
)
|
|
|
10,784
|
|
|
|
(4,245
|
)
|
|
12,483
|
|
|
|
(29,239
|
)
|
|
(Loss) income from discontinued operations, net of tax
|
|
(455
|
)
|
|
|
95
|
|
|
|
3,557
|
|
|
(723
|
)
|
|
|
(9,554
|
)
|
|
Net (loss) income
|
$
|
(7,453
|
)
|
|
$
|
10,879
|
|
|
$
|
(688
|
)
|
|
$ 11,760
|
|
|
$
|
(38,793
|
)
|
|
(Loss) income per share from continuing operations - basic
|
$
|
(0.09
|
)
|
|
$
|
0.16
|
|
|
$
|
(0.08
|
)
|
|
$ 0.18
|
|
|
$
|
(0.59
|
)
|
|
(Loss) income per share from continuing operations - diluted
|
$
|
(0.09
|
)
|
|
$
|
0.15
|
|
|
$
|
(0.08
|
)
|
|
$ 0.18
|
|
|
$
|
(0.59
|
)
|
|
(Loss) income per share from discontinued operations - basic
|
$
|
(0.00
|
)
|
|
$
|
0.00
|
|
|
$
|
0.07
|
|
|
$ (0.01
|
)
|
|
$
|
(0.19
|
)
|
|
(Loss) income per share from discontinued operations - diluted
|
$
|
(0.00
|
)
|
|
$
|
0.00
|
|
|
$
|
0.07
|
|
|
$ (0.01
|
)
|
|
$
|
(0.19
|
)
|
|
Net (loss) income per share - basic
|
$
|
(0.09
|
)
|
|
$
|
0.16
|
|
|
$
|
(0.01
|
)
|
|
$ 0.17
|
|
|
$
|
(0.78
|
)
|
|
Net (loss) income per share - diluted
|
$
|
(0.09
|
)
|
|
$
|
0.15
|
|
|
$
|
(0.01
|
)
|
|
$ 0.17
|
|
|
$
|
(0.78
|
)
|
|
Shares used in computing basic per-share computations
|
|
81,200
|
|
|
|
69,136
|
|
|
|
49,867
|
|
|
70,120
|
|
|
|
49,760
|
|
|
Shares used in computing diluted per-share computations
|
|
81,200
|
|
|
|
70,513
|
|
|
|
49,867
|
|
|
70,964
|
|
|
|
49,760
|
|
Note 1 - Special charges (credits) consist primarily of
restructuring charges. Special charges in the nine fiscal months ended
July 3, 2009 also include a $3.25 million charge related to a legal
settlement.
Note 2 - Effective October 3, 2009 we adopted FSP APB 14-1, which
changed the method of accounting for our convertible notes. In addition,
as required, we revised our previously reported financial statements to
retrospectively apply this change in accounting to prior periods. Under
this new method of accounting, the debt and equity components of our
convertible notes are bifurcated and accounted for separately. The
equity components of our convertible notes are included in Stockholders'
equity in our Condensed Consolidated Balance Sheets with a corresponding
reduction in the carrying values of our convertible notes as of the date
of issuance or modification, as applicable. The reduced carrying values
of our convertible notes are being accreted back to their principal
amounts through the recognition of non-cash interest expense. This
results in recognizing interest expense on these borrowings at effective
rates approximating what we would have incurred had we issued
nonconvertible debt with otherwise similar terms. In connection with
applying this new accounting to current and prior periods, we recorded
$0.5 million, $3.1 million and $3.4 million of additional non-cash
interest expense in the fiscal quarters ended July 2, 2010, April 2,
2010, and July 3, 2009, respectively, and $7.0 million and $10.1 million
in the nine fiscal months ended July 2, 2010 and July 3, 2009,
respectively.
|
CONEXANT SYSTEMS, INC.
Reconciliation of GAAP Financial Measures to Non-GAAP Core
Financial Measures
(unaudited, in thousands, except per share amounts)
|
|
|
|
|
|
|
|
Fiscal Quarter Ended
|
|
Nine Fiscal Months Ended
|
|
|
July 2,
2010
|
|
April 2,
2010
|
|
July 3,
2009
|
|
July 2,
2010
|
|
July 3,
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and Core net revenues
|
$ 60,730
|
|
$ 61,868
|
|
$ 50,844
|
|
$ 184,411
|
|
$ 152,272
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP cost of goods sold
|
$ 23,645
|
|
$ 24,087
|
|
$ 20,533
|
|
$ 71,936
|
|
$ 64,409
|
|
Stock-based compensation (a)
|
(73)
|
|
(95)
|
|
(77)
|
|
(227)
|
|
(196)
|
|
Other (e)
|
-
|
|
(171)
|
|
-
|
|
(226)
|
|
(610)
|
|
Non-GAAP Core cost of goods sold
|
$ 23,572
|
|
$ 23,821
|
|
$ 20,456
|
|
$ 71,483
|
|
$ 63,603
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross margin
|
$ 37,085
|
|
$ 37,781
|
|
$ 30,311
|
|
$ 112,475
|
|
$ 87,863
|
|
Gross margin adjustments (a,e)
|
73
|
|
266
|
|
77
|
|
453
|
|
806
|
|
Non-GAAP Core gross margin
|
$ 37,158
|
|
$ 38,047
|
|
$ 30,388
|
|
$ 112,928
|
|
$ 88,669
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
$ 27,224
|
|
$ 26,855
|
|
$ 29,013
|
|
$ 80,468
|
|
$ 91,864
|
|
Stock-based compensation (a)
|
(1,630)
|
|
(1,760)
|
|
(440)
|
|
(4,828)
|
|
(4,156)
|
|
Amortization of intangible assets (b)
|
(285)
|
|
(284)
|
|
(690)
|
|
(965)
|
|
(2,547)
|
|
Gain on sale of intellectual property (c)
|
-
|
|
-
|
|
-
|
|
-
|
|
12,858
|
|
Special (charges) credits (d)
|
(723)
|
|
210
|
|
(1,076)
|
|
(859)
|
|
(13,168)
|
|
Non-GAAP Core operating expenses
|
$ 24,586
|
|
$ 25,021
|
|
$ 26,807
|
|
$ 73,816
|
|
$ 84,851
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income (loss)
|
$ 9,861
|
|
$ 10,926
|
|
$ 1,298
|
|
$ 32,007
|
|
$ (4,001)
|
|
Gross margin adjustments (a,e)
|
73
|
|
266
|
|
77
|
|
453
|
|
806
|
|
Operating expense adjustments (a-d)
|
2,638
|
|
1,834
|
|
2,206
|
|
6,652
|
|
7,013
|
|
Non-GAAP Core operating income
|
$ 12,572
|
|
$ 13,026
|
|
$ 3,581
|
|
$ 39,112
|
|
$ 3,818
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP interest expense
|
$ 7,159
|
|
$ 7,775
|
|
$ 8,449
|
|
$ 24,437
|
|
$ 25,708
|
|
Debt discount and debt issuance cost expense (k)
|
(531)
|
|
(3,108)
|
|
(3,414)
|
|
(7,046)
|
|
(10,074)
|
|
Interest expense adjustments (l)
|
(541)
|
|
(533)
|
|
-
|
|
(3,474)
|
|
-
|
|
Non-GAAP Core interest expense
|
$ 6,087
|
|
$ 4,134
|
|
$ 5,035
|
|
$ 13,917
|
|
$ 15,634
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP other expense (income), net
|
$ 9,248
|
|
$ (7,755)
|
|
$ (3,567)
|
|
$ (5,711)
|
|
$ (3,455)
|
|
Unrealized (losses) gains on Mindspeed warrant (f)
|
(6,848)
|
|
13,916
|
|
1,166
|
|
11,353
|
|
1,762
|
|
Gains on sales of marketable securities (g)
|
5,177
|
|
3,621
|
|
1,802
|
|
12,911
|
|
1,853
|
|
Loss on impairment of investments (h)
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,770)
|
|
Losses on repurchase and exchange of debt (i)
|
(7,976)
|
|
(9,482)
|
|
-
|
|
(18,581)
|
|
-
|
|
Non-GAAP Core other (income) expense
|
$ (399)
|
|
$ 300
|
|
$ (599)
|
|
$ (28)
|
|
$ (2,610)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP (loss) income from continuing operations
|
$ (6,998)
|
|
$ 10,784
|
|
$ (4,245)
|
|
$ 12,483
|
|
$ (29,239)
|
|
Gross margin adjustments (a,e)
|
73
|
|
266
|
|
77
|
|
453
|
|
806
|
|
Operating expense adjustments (a-d)
|
2,638
|
|
1,834
|
|
2,206
|
|
6,652
|
|
7,013
|
|
Loss (income) on equity method investments (j)
|
130
|
|
(209)
|
|
485
|
|
375
|
|
2,166
|
|
Other expense (income) adjustments (f-i)
|
9,647
|
|
(8,055)
|
|
(2,968)
|
|
(5,683)
|
|
(845)
|
|
Interest expense adjustments (k-l)
|
1,072
|
|
3,641
|
|
3,414
|
|
10,520
|
|
10,074
|
|
Non-GAAP Core income (loss) from continuing operations
|
$ 6,562
|
|
$ 8,261
|
|
$ (1,031)
|
|
$ 24,800
|
|
$ (10,025)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted (loss) income per share from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
GAAP basic
|
$ (0.09)
|
|
$ 0.16
|
|
$ (0.08)
|
|
$ 0.18
|
|
$ (0.59)
|
|
GAAP diluted
|
$ (0.09)
|
|
$ 0.15
|
|
$ (0.08)
|
|
$ 0.18
|
|
$ (0.59)
|
|
Non-GAAP basic
|
$ 0.08
|
|
$ 0.12
|
|
$ (0.02)
|
|
$ 0.35
|
|
$ (0.20)
|
|
Non-GAAP diluted
|
$ 0.08
|
|
$ 0.12
|
|
$ (0.02)
|
|
$ 0.35
|
|
$ (0.20)
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in basic and diluted per-share computations:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
81,200
|
|
69,136
|
|
49,867
|
|
70,120
|
|
49,760
|
|
Diluted
|
82,339
|
|
70,513
|
|
49,867
|
|
70,964
|
|
49,760
|
See "GAAP to Non-GAAP Core Adjustments" below
CONEXANT SYSTEMS, INC.
GAAP to Non-GAAP Core Adjustments:
(a) Stock-based compensation expense is based on the fair value of all
stock options and employee stock purchase plan shares in accordance with
SFAS No. 123(R).
(b) Amortization of intangible assets resulting from business
combinations.
(c) Gain on sale of intellectual property which is not part of our core,
on-going operations.
(d) Special (charges) credits consist primarily of restructuring
charges. Special charges in the nine fiscal months ended July 3, 2009
also include a $3.25 million charge related to a legal settlement.
(e) Represents primarily environmental remediation charges. The nine
fiscal months ended July 3, 2009 also includes charges to inventory
acquired through the purchase of the "SigmaTel" multifunction printer
imaging product lines.
(f) Unrealized (losses) gains associated with the change in the fair
value of our warrant to purchase 6.1 million shares of Mindspeed
Technologies, Inc. common stock, which is accounted for as a derivative
instrument.
(g) Net gains on sale of marketable debt and equity securities.
(h) Losses from other than temporary impairment of marketable securities
and cost based investments.
(i) The loss in the fiscal quarter ended July 2, 2010 consists of the
loss incurred on extinguishment of $116.5 million of convertible
subordinated notes. The loss in the fiscal quarter ended April 2, 2010
consists of the loss incurred on extinguishment of $104.7 million of
convertible subordinated notes.
(j) Loss (income) on equity method investments.
(k) Consists of non-cash interest expense resulting from the
amortization of debt discount and debt issuance costs of $0.5 million,
$3.1 million and $3.4 million in the fiscal quarters ended July 2, 2010,
April 2, 2010 and July 3, 2009, respectively, and $7.0 million and $10.1
million in the nine fiscal months ended July 2, 2010 and July 3, 2009,
respectively.
(l) Other interest expense which is not part of our on-going operations.
For the fiscal quarter ended July 2, 2010, the adjustment consists of
$0.5 million of accelerated amortization of debt issuance costs related
to the extinguishment of $116.5 million of convertible subordinated
notes. For the fiscal quarter ended April 2, 2010, the adjustment
consists of $0.5 million of accelerated amortization of debt issuance
costs related to the extinguishment of $104.7 million of convertible
subordinated notes. For the nine fiscal months ended July 2, 2010 the
adjustment consists of $1.2 million of accelerated amortization of debt
issuance costs related to the extinguishment of $238.8 million of
convertible subordinated notes, $0.6 million of accelerated amortization
of debt issuance costs related to the extinguishment of $61.4 million of
floating rate senior notes and $1.7 million expense from the termination
of our interest rate swap.
Non-GAAP Financial Measures:
We have presented non-GAAP cost of goods sold, non-GAAP gross margin,
non-GAAP operating expenses, non-GAAP operating income, non-GAAP
interest expense, non-GAAP other (income) expense, non-GAAP income
(loss) from continuing operations and non-GAAP basic and diluted income
(loss) per share from continuing operations, on a basis consistent with
our historical presentation to assist investors in understanding our
core results of operations on an on-going basis. These non-GAAP
financial measures also enhance comparisons of our core results of
operations with historical periods. We are providing these non-GAAP
financial measures to investors to enable them to perform additional
financial analysis and because it is consistent with the financial
models and estimates published by analysts who follow our company.
Management believes that these are important measures in the evaluation
of our results of operations. Investors should consider non-GAAP
financial measures in addition to, and not as a substitute for, or
superior to, measures of financial performance prepared in accordance
with GAAP. The non-GAAP financial measures presented by us may be
different than non-GAAP financial measures presented by other companies.
GAAP Guidance:
We do not present GAAP guidance due to our inability to project (i)
future market prices of the common stock of a third party underlying a
derivative financial instrument, (ii) realized gains or losses from the
sale of equity securities in third parties, and (iii) the financial
results of investments accounted for using the equity method of
accounting.
|
CONEXANT SYSTEMS, INC.
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
|
|
|
|
|
|
|
|
July 2,
2010
|
|
October 2,
2009
|
|
ASSETS
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
$
|
45,798
|
|
$
|
125,385
|
|
|
Marketable securities
|
|
23,345
|
|
|
-
|
|
|
Restricted cash
|
|
-
|
|
|
8,500
|
|
|
Receivables, net
|
|
36,226
|
|
|
30,110
|
|
|
Inventories, net
|
|
9,314
|
|
|
9,216
|
|
|
Other current assets
|
|
21,651
|
|
|
26,148
|
|
|
Current assets held for sale
|
|
12,481
|
|
|
-
|
|
|
Total current assets
|
|
148,815
|
|
|
199,359
|
|
|
Property, plant and equipment, net
|
|
6,397
|
|
|
15,299
|
|
|
Goodwill
|
|
109,908
|
|
|
109,908
|
|
|
Other assets
|
|
40,869
|
|
|
25,635
|
|
|
Total assets
|
$
|
305,989
|
|
$
|
350,201
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
|
|
Current liabilities:
|
|
|
|
|
Current portion of long-term debt
|
$
|
-
|
|
$
|
61,400
|
|
|
Short-term debt, net of debt discount of $382 and $0
|
|
10,836
|
|
|
28,653
|
|
|
Accounts payable
|
|
15,989
|
|
|
24,553
|
|
|
Accrued compensation and benefits
|
|
6,575
|
|
|
8,728
|
|
|
Other current liabilities
|
|
35,179
|
|
|
33,978
|
|
|
Total current liabilities
|
|
68,579
|
|
|
157,312
|
|
|
|
|
|
|
|
Long-term debt, net of debt discount of $1,538 and $21,422 (Note 2)
|
|
173,462
|
|
|
228,578
|
|
|
Other liabilities
|
|
60,451
|
|
|
62,089
|
|
|
Total liabilities
|
|
302,492
|
|
|
447,979
|
|
|
Shareholders' equity (deficit)
|
|
3,497
|
|
|
(97,778
|
)
|
|
Total liabilities and shareholders' equity (deficit)
|
$
|
305,989
|
|
$
|
350,201
|
|
|
Selected Other Data
(unaudited, in thousands)
|
|
|
|
|
|
|
|
Fiscal Quarter Ended
|
|
Nine Fiscal Months Ended
|
|
|
July 2,
2010
|
|
April 2,
2010
|
|
July 3,
2009
|
|
July 2,
2010
|
|
July 3,
2009
|
|
Revenues By Region:
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$ 6,491
|
|
$ 4,232
|
|
$ 1,251
|
|
$ 14,717
|
|
$ 7,073
|
|
Asia-Pacific
|
53,579
|
|
56,947
|
|
48,989
|
|
167,331
|
|
142,843
|
|
Europe, Middle East and Africa
|
660
|
|
689
|
|
604
|
|
2,363
|
|
2,356
|
|
|
$ 60,730
|
|
$ 61,868
|
|
$ 50,844
|
|
$ 184,411
|
|
$ 152,272
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow Data:
|
|
|
|
|
|
|
|
|
|
|
Depreciation of PP&E
|
$ 740
|
|
$ 839
|
|
$ 1,936
|
|
$ 2,646
|
|
$ 6,595
|
|
Capital expenditures
|
$ 1,152
|
|
$ 306
|
|
$ 208
|
|
$ 1,677
|
|
$ 555
|
|
Cash flow from Operations
|
$ (4,939)
|
|
$ 1,014
|
|
$ 4,773
|
|
$ 6,280
|
|
$ 682
|
Editorial Contact:
Gwen
Carlson
Conexant Systems, Inc.
(949) 483-7363
or
Investor
Relations Contact:
Scott Allen
Conexant Systems,
Inc.
(949) 483-2698
Copyright © 2012, Business Wire, Inc., All rights reserved. Copyright © 2012, NewsBlaze, Daily News
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