Chipmaker Conexant Systems Inc. on Wednesday beat estimates for sales and adjusted earnings for the recently ended quarter, sending its surging stock even higher in afterhours trading.
The Newport Beach company, which has been working on a turnaround for the past year, posted adjusted “core” earnings of $7.3 million for the quarter ended Dec. 31.
A year ago, Conexant lost $95.3 million.
Analysts estimated the company would post adjusted earnings of $4.7 million.
Conexant’s adjusted core earnings don’t account for expenses in granting stock and options as compensation.
Conexant posted sales of $230.7 million for the quarter, up 64% from a year earlier. Analysts had estimated revenue of $225.7 million.
The company’s shares soared more than 10% in afterhours trading. The stock has about doubled since early fall with a market value of about $1.6 billion.
Conexant’s profit margins improved during the quarter. Gross margin was 41.5% of sales, up from 40.3% in the prior quarter.
Chief Executive Dwight Decker, who has headed Conexant’s revival, said he expects 3% to 5% sequential revenue growth in the current quarter.
That could bring a 25% increase in core operating income from the recently ended quarter.
Net income should be flat versus the just-ended quarter.
Conexant returned to profitability in September, beating the company’s own timeline for stemming losses.
