NEWPORT BEACH, Calif., 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 HomePlugSM and HomePNA™. 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.
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Conexant is a registered trademark of Conexant Systems, Inc. Other brands and names contained in this release are the property of their respective owners.