Conexant Works to Deleverage

Tags: cnxt
16 Dec 5:19am
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Conexant Systems, Inc. (CNXT) designs and develops semiconductor solutions that enable consumers to access the digital world. The company's products enable set-top boxes (STBs), personal computers (PCs), and game terminals to share voice, video, and data over broadband networks including asynchronous digital subscriber line (ASDL), cable, and direct broadcast satellite systems.

Recently, Conexant closed the deal for SigmaTel's Multi-Function Printer unit, which it purchased for $16 million and divested its broadband media processing segment. The company is in the process of deleveraging its balance sheet and retired almost $133 million of debt in fiscal 2008.

Going forward, management had limited visibility owing to the global financial crisis and expects revenues between $103 million and $108 million in the first quarter of fiscal 2009, down 12%-16% sequentially. We continue to rate the stock a Hold and have set a target price of $1.50.

Read the full analyst report on CNXT




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