Irvine’s Broadcom Corp. could be a likely contender to buy the digital television chip business of San Jose’s Advanced Micro Devices Inc.
Speculation about possible suitors comes after word that Advanced Micro might be looking to spin off its manufacturing unit, which makes chips for high definition video, digital TV tuners and graphics, according to an analyst’s report on technology news Web site EETimes.com.
“We believe that Broadcom is a likely candidate to acquire AMD’s consumer TV business for about $250 million to $375 million,” American Tech-nology Research Inc. analyst Doug Freedman said in the report.
Advanced Micro got into the digital TV chip business through its $5 billion acquisition of Canada’s ATI Technologies Inc. in 2006.
The chips are sold to big TV manufacturers, including Sony Corp. and Samsung Group.
A spin-off is just one option Advanced Micro might be looking at.
The company has talked for some time about converting into what it called an “asset-lite” operation, where it would design chips for others but not make them.
Last month Advanced Micro’s chief executive Hector Ruiz stepped down.
Instant Credit Audit
Irvine’s Mavent Inc., a maker of software for mortgage companies, was awarded a patent for its technology that helps lenders get instant credit approval for customers applying for loans.
The software takes a customer’s credit information and does an instant audit,running the electronic data through a software program to determine whether a loan complies with more than 300 federal and state consumer protection laws related to mortgage lending.
“It only takes about five seconds,” said spokesman George Thomas. “In a very quick, automated way it can give an almost instant ‘yes’ or ‘no.'”
“The issuance of the patent,originally drafted nearly a decade ago,is particularly timely given growing concern in the financial and institutional sectors about rising foreclosures and related credit problems,” said Chief Executive Louis Pizante.
Mavent sees about $10 million in sales a year. The company said it counts five of the top 10 lenders as customers.
Customers include Fannie Mae, Citigroup Inc.’s CitiMortgage Inc., National City Corp., Owen Financial Corp. and others.
Mavent, which has about 40 workers here, has other patents pending.
$100 Laptop?
The $100 laptop is still a ways off, according to Stamford, Conn.-based market researcher Gartner Inc.
PC industry watchers have long viewed inexpensive, small-format mobile computers as a sort of holy grail that would increase worldwide literacy and give developing countries access to education and modern technology.
Gartner said it’ll be another three years at least for that dream to become reality, according to a recent report.
Although prices are coming down, there are other costs associated with owning a laptop.
“The economic benefits of technology literacy in emerging markets are currently driving the push for the $100 PC, but there are many open questions that remain,” said Annette Jump, research director at Gartner. “These include determining the relevant hardware specifications, power availability, availability and cost of Internet connection, as well as providing adequate finance and payment options for emerging markets where funds may well be extremely limited.”
So-called mini or ultramobile PCs are classified as being lightweight and having tablet-style screens that are 8 inches or smaller.
Gartner warned that while it is important for prices to continue decreasing, companies that become too focused on breaking the $100 barrier could be distracted from addressing other issues surrounding mini-notebooks.
The main issue is that businesses won’t buy them and consumers don’t really prefer them over regular laptops or even smart phones such as Apple Inc.’s iPhone.
“Mini-notebooks are expanding among consumers, but mini-notebook business users are also some way off,” Jump said.
Increased demand for the devices, along with declining part prices, could potentially reduce prices by 10% to 15% in the next two to three years,but packaging, assembly and software costs are likely to remain the same.
There have been pilot deployments of mini-notebooks in the education sector in a number of emerging markets, including parts of Africa, South America, India, Asia and Eastern Europe.
Power Move
Santa Ana’s Powerwave Technologies Inc., a maker of gear for wireless networks, is seeing some payoff from its turnaround efforts.
Wall Street was surprised by Powerwave’s second-quarter results, which beat analysts’ profit expectations.
Powerwave saw sales of $246 million, up 33% from the same period a year earlier.
Including charges for severance pay and write-downs on assets, the company narrowed its loss to $10 million, less than the $45 million it lost a year ago.
Without the charges, Powerwave would have posted a profit of about $5 million. Analysts were expecting $4 million in profits.
Jefferies & Co. analyst William Choi upgraded the stock to “buy” from “hold” and raised his price target to $6 from $4.
He said that after years of sluggish demand and high expenses the company is “starting to see positive business trends,” according to an Associated Press report.
“We believe the turnaround story is coming to fruition with benefits from improved demand, cost-cutting initiatives and (a) better pricing environment,” he said.
Powerwave spent roughly $6 million during the quarter related to its cost-cutting efforts.
It closed a plant in Salisbury, Md., a few months ago and consolidated some of its plants in China.
Powerwave’s shares are down some 45% in the past year on a recent market value of about $590 million.
