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.