On April 26, Conexant Systems (NASDAQ:CNXT), which provides semiconductor solutions for broadband communications, released second-quarter earnings for the period ended March 30.

  • Lower sales from both set-top boxes and peripheral product lines contributed heavily to the 17.6% revenue decline.
  • Management anticipates revenues in a range of $178 million to $182 million for the third quarter, gross margins between 44% and 45%, and an operating loss between $0.03 and $0.04 per share.
  • Our Motley Fool CAPS community collectively rates this stock a below-average two stars.      

(Figures in millions, except per-share data)

Income Statement Highlights

Q2 2007

Q2 2006

Change

Sales

$199.9

$242.6

(17.6%)

Net Profit

($133.4)

($10.1)

N/A

EPS

($0.27)

($0.02)

N/A

Diluted Shares

489.3

477.5

2.5%

Get back to basics with a look at the income statement.

Margin Checkup

Q2 2007

Q2 2006

Change*

Gross Margin

45%

43.8%

1.2

Operating Margin

(86.4%)

(17.1%)

(69.3)

Net Margin

(66.8%)

(4.2%)

(62.6)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2007

Q2 2006

Change

Cash + ST Invest.

$234.3

$595.1

(60.6%)

Accounts Rec.

$110.7

$103.1

7.4%

Inventory

$76.5

$87.3

(12.4%)

Liabilities

Q2 2007

Q2 2006

Change

Accounts Payable

$95.1

$134.3

(29.2%)

Long-Term Debt

$525

$200

162.5%

Learn the ways of the balance sheet.

Cash Flow Highlights

Q2 2007

Q2 2006

Change

Capital Expenditures

$7.7

$7.4

4.9%

Find out why Fools always follow the money.

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.