Conexant warns, cuts more staff

Communications chipmaker Conexant said Monday that earnings and revenue for the third quarter would be below company forecasts and that it would lay off 450 employees. The Newport Beach, Calif.-based company now expects a loss of 45 cents a share, compared to a previously forecasted 40 cents to 45 cents a share. The company also expects revenue of $200 million, compared to the previous quarter's $251 million. Analysts surveyed by First Call expected Contexant to post revenue of $204 million and a loss of 43 cents a share. The layoffs are in addition to the 1,500 cuts Conexant announced last March. The company will also take a restructuring charge of $475 million in the third quarter and another charge in the fourth. Conexant is outsourcing production of generic chips while it continues to make specialized chips in-house. The company will announce earnings July 19 after the markets close.