Tuesday, July 6, 2004
Conexant Systems has reduced its third quarter earnings outlook citing weakness in its wireless local area network (WLAN) business due to very tough competition from Taiwanese based suppliers.
"A number of Taiwan-based chip suppliers emerged with extremely low-priced solutions, displacing incumbent suppliers in certain high-volume applications", commented Armando Geday, Conexant's CEO.
He added these additional competitors exacerbated pricing pressure in a market already characterized by severe price competition.
The company now expects third fiscal quarter revenues to be between $265 million and $270 million compared to expectations in April of revenues between $308 million and $323 million.
Geday said Conexant's other businesses, which include chips for dial-up and digital subscriber line connectivity as well as digital set-top box and PC video applications, were essentially flat. "We are absolutely confident in the long-term prospects for the combined company", said Geday, referring to Conexant's recent acquisition of GlobespanVirata.
By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved
|
