Conexant Systems Inc. (NASDAQ: CNXT) did something unusual even for a small cap stock. The communications chip company raised its guidance. It now sees EPS of $0.24 to $0.26 vs. $0.15 estimates. It also reiterated Q4 revenues at $120 to $125 million vs. estimates of $122.27 million. It now expects core gross margins of 54% to 55% rather than 51% to 52% because of a richer than anticipated product mix. A semiconductor company for communications chips raising guidance in this environment is rather rare, even for a $150 million market cap stock. The company also attributed better than expected cost management. Shares are indicated up around $3.00 after a $2.88 close, although so far no volume has been seen. Its 52-week trading range is $2.68 to $14.80.
Jon C. Ogg
September 30, 2008