Conexant Delivers on Guidance; EPS $.10

Conexant Systems, Inc. CNXT today announced that financial results for the fourth 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 60.7 percent of revenues and core operating margin of 18.5 percent of revenues. Fourth 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 fourth quarter of fiscal 2010, Conexant core revenues were $56.3 million. Core gross margins were 60.7 percent of revenues. Core operating expenses were $23.8 million. Core operating income was $10.4 million, and core net income was $4.4 million, or $0.05 per diluted share, based on an average of 82 million shares outstanding during the quarter. On a GAAP basis, net revenues for the fourth quarter of fiscal 2010 were $56.3 million. GAAP gross margins were 60.5 percent of revenues. GAAP operating expenses were $25.6 million. GAAP net income including discontinued operations was $8.5 million, or $0.10 per diluted share.