Conexant Expands Product Development Resources in India; Paxonet Acquisition Adds More Than 100 Experienced Design Engineers
NEWPORT BEACH, Calif.—(BUSINESS WIRE)—Dec. 6, 2004—
Conexant Systems, Inc. (NASDAQ:CNXT), a worldwide leader
in semiconductor solutions for broadband communications and the
digital home, today announced that it has significantly increased its
product development resources in India through the acquisition of
Paxonet Communications, Inc., a privately held company headquartered
in Fremont, Calif. with an engineering workforce primarily based in
India.
Paxonet, which was founded in 1996 as CoreEl Microsystems, Inc.,
provides complete semiconductor design services, from concept to
validated silicon, to a wide variety of worldwide customers, including
Conexant. The company has approximately 105 employees, with more than
100 located in Pune and Bangalore, India. Prior to the Paxonet
acquisition, Conexant had approximately 200 employees in its design
centers in Hyderabad and Noida, India.
"Paxonet's dedicated and experienced team has delivered
production-worthy, complex semiconductor designs on schedule to major
customers throughout the world," said Dwight W. Decker, Conexant
chairman and chief executive officer. "We plan to leverage Paxonet's
expertise across each of our business units as we work to accelerate
new product introductions. This acquisition expands Conexant's
research and development assets in India by 50 percent, in line with
our previously communicated strategy of reducing operating expenses by
shifting product development resources to lower-cost regions."
"We are enthusiastic about joining the Conexant team," said Chetan
Sanghvi, Paxonet founder and chief executive officer. "We have already
worked closely with Conexant, and the two companies share similar
cultures and development methodologies. I am confident that the
Paxonet team will make immediate and significant contributions to
Conexant's new product design and development efforts."
Paxonet has a large portfolio of modifiable and reusable IP cores
for semiconductor communications technology and has provided
significant design support to Conexant's Red Bank, N.J.-based
Broadband/DSL Access business unit over the past few years. The team
has completed several silicon-proven designs using 0.13-micron,
0.14-micron and 0.18-micron process technologies.
About Conexant
Conexant's innovative semiconductor solutions are driving
broadband communications, enterprise networks and digital home
networks worldwide. The company has leveraged its expertise and
leadership position in modem technologies to enable more Internet
connections than all of its competitors combined, and continues to
develop highly integrated silicon solutions for broadband data and
media processing networks.
Key products include client-side xDSL and cable modem solutions,
home network processors, broadcast video encoders and decoders,
digital set-top box components and systems solutions, and dial-up
modems. Conexant's suite of networking components includes a
leadership portfolio of IEEE 802.11a/b/g-compliant WLAN chipsets,
software and reference designs, as well as solutions for applications
based on HomePlug(SM) and HomePNA(TM). The company also offers a
complete line of asymmetric and symmetric DSL central office
solutions, which are used by service providers worldwide to deliver
broadband data, voice, and video over copper telephone lines.
Conexant is a fabless semiconductor company that recorded more
than $900 million in revenues in fiscal year 2004. The company has
approximately 2,400 employees worldwide, and is headquartered in
Newport Beach, Calif. To learn more, please visit us at
www.conexant.com.
Safe Harbor Statement
This press release contains statements relating to our future
results (including certain projections and business trends) that are
"forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. Actual results may differ materially
from those projected as a result of certain risks and uncertainties.
These risks and uncertainties include, but are not limited to: the
substantial losses the company has incurred recently; the cyclical
nature of the semiconductor industry and the markets addressed by the
company's and its customers' products; demand for and market
acceptance of new and existing products; successful development of new
products; the timing of new product introductions; the availability of
manufacturing capacity; pricing pressures and other competitive
factors; changes in product mix; product obsolescence; the ability to
develop and implement new technologies and to obtain protection for
the related intellectual property; the uncertainties of litigation;
and the risk that the businesses of Conexant and GlobespanVirata have
not yet been completely and may not be integrated successfully, as
well as other risks and uncertainties, including those detailed from
time to time in our Securities and Exchange Commission filings. These
forward-looking statements are made only as of the date hereof, and we
undertake no obligation to update or revise the forward-looking
statements, whether as a result of new information, future events or
otherwise.
Conexant is a registered trademark of Conexant Systems, Inc. Other
brands and names contained in this release are the property of their
respective owners.
Contact:
Conexant Systems, Inc.
Gwen Carlson (Editorial), 949-483-7363
or
Bruce Thomas (Investor Relations), 949-483-2698
