Newport Beach chipmaker Conexant Systems Inc. saw its shares slump a day after reporting big gains in sales and profits for the recently ended quarter but falling short of Wall Street’s profit expectations and disappointing analysts with a weak outlook for the current quarter.
Shares of Conexant were down about 20% in afternoon New York trading to a market value of about $210 million.
On Tuesday, Conexant said it foresees sales and profits below what analysts had been expecting for the three months through June.
It projected revenue of $60 million to $61 million, shy of the $61.4 million analysts had been forecasting.
Profits are seen coming in at $4.15 million to $5 million. Analysts had been looking for a profit of $7.5 million.
Conexant’s outlook was hurt in part by recent stock sales that diluted its profit forecast when expressed on a per share basis.
The outlook came on the heels of strong results for the three months through March.
Conexant reported sales of $61.9 million, up 40% from a year earlier and beating the $60.8 million expected by analysts.
It reported an adjusted profit of $8.3 million, reversing a $7.8 million loss a year earlier.
But Conexant’s profit came in short of the $9 million expected by Wall Street.
Conexant makes chips that go into printers, TV set-top boxes, digital picture frames and other devices.
