On Oct. 26, semiconductor designer Conexant Systems (NASDAQ:CNXT) released fourth-quarter earnings for the period ended Sept. 30.

  • Besides the fourth-quarter figures below, the company increased full-year 2006 sales by 34%, while its GAAP losses narrowed from $0.37 per share to $0.26.
  • In his look-ahead into fiscal 2007, CEO Dwight Decker noted continued weakness in the overall semiconductor market, and as a result "our customers are cautious in this uncertain environment."
  • Our Motley Fool CAPS community has similar thoughts about the future, giving the stock a two-star rating.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q4 2006

Q4 2005

Change

Sales

$247

$246

$215

14.4%

Net Profit

--

($21)

$50

N/A

EPS

$0.03

($0.04)

$0.10

N/A

Diluted Shares

--

484

485

(0.1%)



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

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

45.75%

40.29%

5.46

Operating Margin

1.78%

(6.08%)

7.86

Net Margin

(8.58%)

23.30%

(31.88)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$341

$342

(0.2%)

Accounts Rec.

$123

$87

41.0%

Inventory

$97

$95

2.2%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$114

$109

4.3%

Long-Term Debt

$250

$515

(51.5%)



Learn the ways of the balance sheet.

Cash Flow Highlights
Hmph. No cash flow statement was released with the rest of the earnings stuff.

Find out why Fools always follow the money.

Related companies:

  • Atheros Communications (NASDAQ:ATHR)
  • Diodes (NASDAQ:DIOD)
  • Skyworks Solutions (NASDAQ:SWKS)
  • Semtech (NASDAQ:SMTC)

Related Foolishness:

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