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Conexant is a publicly listed semiconductor company, which was formerly the semiconductor division of Rockwell International. Conexant is the remnants of what were the Brooktree Corporation, the Hi-Media broadband communications chipset business of the ComStream Corp and the Rockwell's semiconductors division (modem, fax modem, DSL, GSM and CDMA chips). The Brooktree Corporation started operations in 1983 and in September 1996 was sold to Rockwell Semiconductor, a division of Rockwell International. ComStream started operations in 1984 and in May 1997 Rockwell Semiconductor acquired the Hi-Media broadband business of the company. Rockwell Semiconductor was then later spun-off from Rockwell in January 1999 and then became known as Conexant. Conexant was one of the world's leading provider of modems and dial-up processors that are found in modems, fax machines, ATMs, credit card swipers etc. Even now, Conexant retains the majority market share of all modems sold today with their Winmodem processors through their HCF and HSF standards. After their purchase of Brooktree, they entered the set-top box and convergence video segment and are now providing the majority of TV tuner DSPs for both PC add-on cards and PVRs. In 2003, they merged with GlobespanVirata, a leading provider of Digital Subscriber Line (DSL), wireless networking(Wi-Fi), and other broadband solutions. Globespan Virata brought technologies which have given the combined company the potential for greater integration of broadband access with digital media devices to serve as the gateway for information and entertainment into the home. In 2004, they acquired Amphion Semiconductor for their H.264 and VC1 technologies. Broadcom, their leading rival, had tactically acquired Sandvideo who were set to be Conexant's main source of H.264 technology for the emerging HDTV market. Their acquisition of the Belfast, UK based Amphion Semiconductor has allowed them to secure their future in the Hi-Def market and beyond. The company is now fabless since they spun off Jazz Semiconductor in 2002. They rely on outsourced semiconductor foundries to manufacture their products. As with many tech oriented companies in recent years, Conexant has outsourced workers to countries such as China and India in an effort to cut costs. Some have criticized Conexent's management for outsourcing jobs to reduce expenses while taking no action to reduce executive pay. Over the past 3 years the company’s performance has languished. Conexant's debt is considerable and it has increased in recent quarters due to negative net income and high interest payments. Investor confidence in Conexant is lagging and the future outlook for debt reduction looks grim in light of high expenses that the company currently incurs. $130 Million of 5.25% Convertible Note. June 05 – June 06 $ 67 Million of 4.25% Convertible Note. June 05 – June 06 $ 515 Million of 4% Convertible Note. March 06 – March 07 Offering $ 200 million of 4% Convertible Note, 2026 $824 million to $1.05 billion in liabilities due over the next 2 years, with obligations of $112 million to $336 million owed to Texas Instruments for patent infringement. Conexant inherited the legal claims to the suit when it acquired Globespan Virata in February 2004. Conexant is headquartered in Newport Beach, California, and has research and development centers in San Diego and Cupertino, California, Red Bank, New Jersey, Palm Bay, Florida, Austin, Texas, the UK and Ireland (Bristol, Belfast), France (Sophia Antipolis), Israel (Haifa), India (Pune, Bangalore, Hyderabad and NOIDA), China (Shanghai,Chengdu), Taiwan (Taipei) and various sales offices around the world.
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