The revision in guidance is attributable to strength in company’s voice-over-IP and wide area networking businesses, due primarily to better than anticipated 3G wireless infrastructure and fiber-to-the-building customer demand in China.
Mindspeed anticipates decreasing its inventory levels materially in the second quarter of fiscal 2009. Based upon anticipated inventory reduction and product mix changes in the second quarter of fiscal 2009, the company now expects gross margin for the second quarter to be about 63% for the second quarter, incorporating the benefit of $2.0 million in patent sales.
Mindspeed is progressing with its recent restructuring efforts for the current quarter and continues to anticipate an operating expense reduction to $21 million in the third fiscal quarter of 2009 as recently announced. For the second quarter of fiscal 2009, the company now anticipates operating expenses to be $23.2 million due primarily to an unanticipated medical insurance claim during the period. The company is scheduled to release its earnings results for the second fiscal quarter of 2009 on May 4, 2009.
Mindspeed is a US-based supplier of semiconductor solutions for network infrastructure applications.
