Starbase Sells Software to I2; Go2 Systems Hires Sales Executive
With the chips down, the San Jose-based Semiconductor Industry Association recently came through with some encouraging news.
The trade group’s recent research report projected that the global chip industry, which has seen anemic growth in the past year and a half, could come back to the tune of 20.5% growth next year and a whopping 25% growth in 2003.
“Despite the sales decline brought on by the excess inventory this year, the semiconductor market is still projected to grow from $149 billion in 1999 to $283 billion by 2004, a compound annual growth rate of almost 14%,” said Kirk Pond, chief executive of South Portland, Maine-based Fairchild Semiconductor International Inc. “The industry has a 17% compound annual growth rate for the past 40 years and we expect that to continue for the foreseeable future despite periodic cycles.”
No doubt the report sang to Orange County’s chipmakers, which have suffered their own set of blows in recent weeks. Broadcom Corp. recently warned that its second quarter revenue would be 32% to 35% off from its first quarter number, citing soft chip demand. 3Com Corp., one of Conexant Systems Inc.’s largest customers, announced that it planned to discontinue its cable and digital subscriber line modem business. Conexant makes chips for those modems.
The report could bring chip executives one step closer to a cure for the “lack of visibility” disease that strikes when business seems to drop off a cliff. For what it’s worth, the association report predicts a comeback in the general timeframe OC’s technology executives have predicted in the past few months,a period extending from the fourth quarter to the first quarter next year.
The predicted rebound wouldn’t be a new thing. The semiconductor industry generally follows what’s known as the chip cycle: a period of steep, rapid growth followed by a period of correction. Still, industry insiders have predicted in recent months that the traditional chip cycle will become more volatile.
Since the chip industry increasingly serves consumer markets, radical changes to industry cycles could be abreast, Semiconductor Equipment and Materials Inc. president Stanley Myers told the Electronic Times in March.
“The closer you get (to the consumer), the (more the) market is going to be impacted by consumer confidence than business-to-business,” Myers said. “Cycles could become much more volatile. If (consumers) sneeze, (suppliers) get pneumonia.”
Starbase Enters I2 Pact
Starbase Corp. of Santa Ana recently said that Dallas-based business software maker i2 Technologies Inc. signed an agreement to install CaliberRM and CaliberRBT, two of Starbase’s applications, across the company to help manage portions of i2’s business units.
Neither company revealed the deal’s value.
“Prior to adopting technology standards, larger organizations perform a careful examination of prospective vendors to ensure continued product support. We were thrilled to be selected by i2 Technologies and are working closely with them to ensure a smooth implementation of the selected Starbase technology,” said James H. Smith, a Starbase vice president.
Go2 Gets Sales VP
Go2 Systems Inc., which makes technology that allows wireless phone users to locate and order food and other services, said Terry Kohn, a former executive at Ariba Inc., has joined the company as vice president of channel sales. While at business software maker Ariba, Kohn helped secure major national and international accounts including American Airlines, Telstra Corp., NEC Corp., Credit Suisse Group and Sony Corp.
At Go2, Kohn plans to focus on developing channel-marketing strategies, leading the process of integrating Go2’s suite of products and services into the wireless customer relationship management offerings of large system integrators. Before Ariba, Kohn was a principal consultant for PricewaterhouseCoopers LLP.
“Terry’s wealth of experience in sales support and in strategic channel sales and integration make him a welcome member of go2’s talented team,” said go2 Chief Executive Lee Hancock. “We are aggressively seeking accomplished individuals to join our organization, and Terry’s background and expertise address an exciting channel for leveraging our technology and infrastructure.”
MicroVention Gets Patent
Aliso Viejo-based medical device maker MicroVention Inc. recently received a patent for a device that treats cerebral anyurisms,an ailment that occurs in approximately 2% of Americans, or roughly 5 million people.
“This is a crucial patent for MicroVention’s portfolio,” said MicroVention Chief Executive Bob Rosenbluth. “We have taken an aggressive stance in developing a strong intellectual property position for the use of hydrogels in aneurysm embolization. This patent issue is a significant milestone that reflects the importance of our breakthrough in this area of vascular medical treatment.”
Most aneurysms are treated by neurosurgery. Only 20% of patients are treated with the less-invasive endovascular approach. Microvision estimates the worldwide market for devices that treat cerebral aneurysms will grow from approximately $125 million in 2001 to more than $250 million by 2005.
