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.
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.
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Conexant Systems, Inc. Gwen Carlson (Editorial), 949-483-7363 or Bruce Thomas (Investor Relations), 949-483-2698