Conexant (CNXT) recently reported revenues of $61.8 million, up 10% year over year. Gross margin came in at 61%, up from 60.2% in the previous quarter and better than management’s expectation of 60%. Operating margin came in at 22%. Earnings per share came in at 17 cents beating the Zacks Consensus Estimate of 10 cents and management’s expectations of 11 cents. Conexant ended the quarter with $59.1 million in cash and cash equivalents, compared to $125.4 million in the previous quarter.

During the quarter, Conexant used approximately $62 million to retire senior secured notes due in November 2010. Conexant also exchanged equity for $17.6 million of convertible notes and established a new accounts receivable credit facility worth $15 million. Conexant earlier announced that it will sell up to $100 million of common stock, preferred stock and debt securities.

The company intends to use the net proceeds from the sale of securities — under the shelf registration statement — for general corporate purposes, which includes the repaying, redeeming or repurchasing of the existing debt, and also for working capital requirements, capital expenditures and acquisitions.

Going forward, Conexant expects revenues within $60 million – $61 million in the first quarter of fiscal 2010. With stable gross margins. Management plans to capture market share with existing designs and delivering new products for imaging, audio, embedded modem and video surveillance applications. In addition, the company also plans to develop its core capabilities in analog markets along with software development to capitalize on new opportunities in adjacent markets.

Gross margin is estimated at 61%. Operating expenses are forecasted at $25 million. Operating income is forecasted between $11.6 million and $12.5 million. Net income per share is projected within 13 cents – 14 cents.

Headquartered in Newport Beach, California, Conexant Systems designs and develops semiconductor solutions that enable consumers to access the digital world.

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