Conexant Reports Financial Results for the Fourth Quarter of Fiscal 2008 (Revenue up 6%)

Note 1 Asset impairments for the twelve months ended October 3, 2008 and three months ended June 27, 2008 includes non-cash impairment charges related to our Broadband Access (BBA) product lines related to goodwill of $108.6 million, intangible assets of $1.9 million, property, plant and equipment of $6.5 million and technical license tool impairments of $3.4 million. Asset impairments for the three and twelve months ended September 28, 2007 also includes non-cash impairment charges related to our Embedded Wireless Networking (EWN) business related to goodwill and intangible assets of $135.0 million and $20.0 million, respectively.

Note 2 (Loss) gain of equity method investments for the twelve months ended September 28, 2007 includes a gain on the sale of our investment in Jazz Semiconductor, Inc. of $43.5 million.

Note 3 On April 29, 2008, the Company announced it had signed a definitive agreement to sell its Broadband Media Processing (BMP) product lines to NXP Semiconductors. As a result of this transaction, which closed in August 2008, the results of the BMP business have been reported as discontinued operations and its assets and liabilities as of September 28, 2007 have been classified as held for sale. The results of discontinued operations include tax expense of ($0.4) million, $0.9 million, $0.6 million, $1.0 million and $1.2 million for the three months ended October 3, 2008 and June 27, 2008 and September 28, 2007, and the twelve months ended October 3, 2008 and September 28, 2007, respectively.

Note 4 On June 27, 2008, the Company affected a one-for-ten reverse stock split of its common stock. All share and per share data in these condensed consolidated financial statements have been adjusted to give effect to the reverse split.

CONEXANT SYSTEMS, INC.

Reconciliation of GAAP Financial Measures to Non-GAAP Core Financial Measures

(unaudited, in thousands, except per share amounts)

Three Months Ended Twelve Months Ended
October 3, June 27, September 28, October 3, September 28,
2008 2008 2007 2008 2007
GAAP net revenues $ 122,615 $ 115,594 $ 138,933 $ 502,660 $ 573,576
Royalty buyout (k) (14,700 )
Non-GAAP Core net revenue less impact of royalty buyout

$

122,615

$

115,594

$

138,933

$

487,960

$

573,576

GAAP cost of goods sold $ 56,300 $ 57,186 $ 72,836 $ 233,779 $ 295,464
Cost of goods sold adjustments (a, f) (525 ) (42 ) (1,323 ) 35 (1,684 )

Non-GAAP Core cost of goods sold

$

55,775

$

57,144

$

71,513

$

233,814

$

293,780

GAAP gross margin $ 66,315 $ 58,408 $ 66,097 $ 268,881 $ 278,112
Gross margin adjustments (a, f) 525 42 1,323 (35 ) 1,684
Non-GAAP Core gross margin 66,840 58,450 67,420 268,846 279,796
Royalty buyout (k) (14,700 )
Non-GAAP Core gross margin less impact of royalty buyout

$

66,840

$

58,450

$

67,420

$

254,146

$

279,796

GAAP operating expenses $ 57,157 $ 184,781 $ 162,884 $ 365,222 $ 542,718
Stock-based compensation (a) (2,334 ) (6,154 ) (3,856 ) (14,180 ) (15,502 )
Transitional salaries and benefits (b) (620 ) (3,885 )
Amortization of intangible assets (c) (4,455 ) (3,629 ) (4,574 ) (15,515 ) (21,259 )
Asset impairments (d) (22 ) (120,617 ) (67,698 ) (120,769 ) (222,698 )
Special charges (e) (2,568 ) (8,425 ) (25,302 ) (17,806 ) (33,812 )
Other (m) (800 ) (800 ) (400 )
Non-GAAP Core operating expenses $ 46,978 $ 45,956 $ 60,834 $ 196,152 $ 245,162
GAAP operating income (loss) $ 9,158 $ (126,373 ) $ (96,787 ) $ (96,341 ) $ (264,606 )
Gross margin adjustments (a, f) 525 42 1,323 (35 ) 1,684
Operating expense adjustments (a-e, m) 10,179 138,825 102,050 169,070 297,556
Non-GAAP Core operating income $ 19,862 $ 12,494 $ 6,586 $ 72,694 $ 34,634
Royalty buyout (k) (14,700 )
Non-GAAP Core operating income less impact of royalty buyout

$

19,862

$

12,494

$

6,586

$

57,944

$

34,634

GAAP other expense (income), net $ 3,352 $ (9,036 ) $ (9,771 ) $ 3,809 $ (36,148 )
Unrealized (losses) gains on Mindspeed warrant (g) (2,312 ) 1,881 (8,820 ) (14,974 ) (952 )
Gains on sales of equity securities (h) 21 146 10,446 896 17,016
Loss on impairment of facility (p) (1,435 ) (1,435 )
Gain on sale of building (o) 6,567 6,567
Other adjustments (j) 5,324 5,324
Non-GAAP Core other income $ (374 ) $ (442 ) $ (2,821 ) $ (5,137 ) $ (14,760 )
GAAP provision for income taxes $ 373 $ 2,466 $ 1,383 $ 4,418 $ 3,131
Tax expense on gain on sale of building (o) (2,225 ) (2,225 )
Non-GAAP Core provision for income taxes $ 373 $ 241 $ 1,383 $ 2,193 $ 3,131
GAAP net gain (loss) from continuing operations $ (2,227 ) $ (126,419 ) $ (90,616 ) $ (133,362 ) $ (221,190 )
Gross margin adjustments (a, f) 525 42 1,323 (35 ) 1,684
Operating expense adjustments (a-e, m) 10,179 138,825 102,050 169,070 297,556
Losses (gains) of equity method investments (i) 808 (53 ) (6,988 ) (2,804 ) (51,182 )
Other expense (income) adjustments (g, h, j, o, p) 3,726 (8,594 ) (6,950 ) 8,946 (21,388 )
Tax expense on gain on sale of building (o) 2,225 2,225
Interest expense adjustment (n) (11 ) 1,344
Non-GAAP Core net income (loss) from continuing operations

$

13,011

$

6,015

$

(1,181

)

$

45,384

$

5,480

Basic and Diluted net (loss) income from continuing operations per share:
GAAP (l) $ (0.04 ) $ (2.56 ) $ (1.84 ) $ (2.70 ) $ (4.52 )
Non-GAAP Basic (l) $ 0.26 $ 0.12 $ (0.02 ) $ 0.92 $ 0.11
Non-GAAP Diluted (l) $ 0.26 $ 0.12 $ (0.02 ) $ 0.91 $ 0.11
Shares used in basic and diluted per-share computations

Basic

 

49,565

 

49,450

 

49,177

 

49,394

 

48,940

Diluted 49,994 49,844 49,177 49,653 49,199

See GAAP to Non-GAAP Core Adjustments below

« Previous Page 1 | 2 | 3 | 4 | 5  Next Page »



Review Article Be the first to review this article

Trimble Catalyst

Featured Video
Jobs
Intelligence and Image Analyst for Boeing at Las Cruces, NM
Geospatial Analyst for Vencore at Suitland, MD
Geospatial Intelligence Analyst for Quick Services LLC at Fort Bragg, NC
Senior Design Engineer for Kaman at Gilbert, AZ
Architectural Designer II for AECOM at New York, CA
Upcoming Events
DistribuTECH at San Diego Convention Center San Diego CA - Jan 31 - 2, 2017
Coastal GeoTools 2017 at SC - Feb 6 - 9, 2017
Teledyne Optech
Teledyne:
CADalog.com - Countless CAD add-ons, plug-ins and more.



Internet Business Systems © 2017 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation TechJobsCafe - Technical Jobs and Resumes  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy