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Credit Suisse maintained a "neutral" rating on Conexant Systems after the company announced a $200 million convertible debt offering. Conexant (nasdaq: CNXT - news - people ), which makes chips used in networking equipment, announced the sale after Wednesday`s close of trading and said it will use the proceeds of the sale to pay down existing debt. Shares were trading down wider than 3% in today`s trading. Michael Masdea of Credit Suisse estimates Conexant has about $824 million to $1.05 billion in liabilities due over the next two years, with obligations of $112 million to $336 million owed to Texas Instruments (nyse: TXN - news - people ) for patent infringement. While the analyst expected Conexant to raise capital at some point this year, the timing of the debt offering was earlier than he expected. Nevertheless, Masdea believes the announcement to be an overall positive for Conexant as a "major uncertainty" has been lifted off the stock. "We are largely where we expected to be at this point, albeit with a dilutive convert now on the balance sheet," he wrote in a note to investors. "We can now start to turn more of our attention to the core business, which we believe is making good progress, particularly the set-top box business." The Credit Suisse analyst reiterated a $3.35 target price on Conexant. |
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| aus der Diskussion: | Conexant nach dem Tal der Tränen auf dem Weg zur Besserung |
| Autor (Datum des Eintrages): | heroldbroker (06.03.06 09:41:52) |
| Beitrag: | 34 von 54 (ID:20529697) |
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