Company Now Focused on Providing Solutions for Imaging, Video, Audio,
and Internet Connectivity Applications
Conexant Systems, Inc. (NASDAQ:CNXT) today announced that it has
completed the sale of its Broadband Media Processing product lines to
NXP Semiconductors. Conexant will receive approximately $110 million in
cash and up to $35 million in an “earn-out”
fee, contingent upon the achievement of certain milestones through the
end of calendar 2009. The company plans to improve its balance sheet by
using the majority of the net proceeds to retire debt.
“The divestiture of our Broadband Media
Processing business is consistent with our overall strategy of improving
our business model and generating positive cash flow, focusing our
investments on the market segments where we either lead or have the
opportunity to lead, and establishing a long-term, sustainable capital
structure,” said Scott Mercer, Conexant’s
chief executive officer. “Our continuing
businesses, which consist of Imaging and PC Media and Broadband Access,
address a total available market that is more than $3 billion today and
expected to grow at a compound annual rate of seven percent over the
next several years, and we plan to expand our presence in each of the
major market segments we serve.
“I’d also like to
wish our former employees who have joined NXP Semiconductors the best as
they continue working to deliver innovative solutions to set-top box
customers around the world,” Mercer said. “Moving
forward, I am confident that the combined team will attain even higher
levels of success.”
Conexant’s Imaging and PC Media business
provides advanced solutions for imaging, video, audio, and modem
applications. The company’s Broadband Access
business delivers end-to-end system solutions for ADSL, VDSL, and SHDSL
applications.
Conexant’s Broadband Media Processing team
provided products for satellite, cable, terrestrial, and IPTV set-top
box applications. Approximately 700 Conexant employees joined NXP
Semiconductors upon completion of the transaction. Conexant’s
worldwide head count is now approximately 1,350.
About Conexant
Conexant’s comprehensive portfolio of
innovative semiconductor solutions includes products for imaging, video,
audio, and Internet connectivity applications. Conexant is a fabless
semiconductor company that recorded revenues of $809 million in fiscal
year 2007. The company is headquartered in Newport Beach, Calif.
