Mindspeed looks at its options after 3G disappoints
“While we were disappointed with our financial performance in the fiscal second quarter, the weakness was primarily within the 3G wireless market. In turn, we have had to reconsider our views of how and when that market will develop," said Raouf Halim, chief executive officer at Mindspeed. "Our other product lines for high performance analog and communications processors performed consistently with our expectations, and 4G/LTE met our goal of doubling in the quarter. We believe our diverse product families for HPA, communications processors and wireless infrastructure are well positioned in their respective markets, and we remain committed to maximizing value to our customers, partners, employees and shareholders.”
As well as appointing Morgan Stanley to evaluate options for the company, Mindspeed has also written off $33m in good will following acquisitions in wireless infrastructure. The company, a spin-out from Conexant Systems, bought UK-based chip designer picoChip in January 2012 for $75m.
The current quarter results saw revenue of $35m with both the analog and communications business flat. Wireless infrastructure grew 16% on last year’s quarter but was only $2.6m.
www.mindspeed.com
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