Conexant Systems Inc.: Offering a Newly Streamlined Product Portfolio Post-Bankruptcy
Conexant Systems is a spin-off of former conglomerate Rockwell International Corporation. Established in 1999, Conexant was based in Newport Beach, California. Conexant specialized in microchips and other semiconductor products. In 2013, after a 30% decline in revenue in 2011 and after losing its main customer in Eastman Kodak Company (which also filed for bankruptcy), Conexant was forced to file for Chapter 11 bankruptcy with $195 million in secured debt. The entirety of Conexant’s equity was given to QP SFM Capital Holdings (a unit of Soros Fund Management) as part of the terms of bankruptcy. Conexant’s consistent decline in revenue is explained by a variety of factors: over expansion, the dot-com bubble, and an enormous debt-servicing burden. Immediately after separating from Rockwell, Conexant went on a purchasing spree, acquiring seven companies for almost $2 billion in 11 months. Additionally, after the market crashed in 2000, many of Conexant’s clients (such as the networking equipment vendors Nortel and Lucent) opted out of purchasing from Conexant.
The company then decided to divest its many divisions into independent companies, including Jazz Semiconductor and Mind speed Technologies. The diminishing revenue stream and the increasing interest on debt obligations as a result of acquisition eventually overwhelmed Conexant. As part of their post-bankruptcy game plan, Conexant has decided to streamline their product portfolio and focus solely on audio/video, voice, and imaging technology. Conexant Systems Inc. is now debt-free and has moved its headquarters to Irvine, California. ASAP Semiconductor is a leading distributor of both current and obsolete parts. Please browse our selection at ASAP Memory, the memory-related inventory of ASAP Semiconductor. We carry network cards, SRAM ICs, and OTP memory ICs from companies like Conexant Systems that may not offer these products anymore.
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