Scanning for Anthrax at Intellicon; Microsemi Sees the Light
Orange County’s two largest chipmakers have done their part to help the beleaguered Nasdaq.
While Irvine’s Broadcom Corp. and Newport Beach-based Conexant Systems Inc. may not have posted quarterly results that would make bearish chip analysts change their ways, both showed they’re at least progressing.
Broadcom, which has been working to fold in its latest acquisitions while dealing with a general market downturn, bested third-quarter sales estimates of $210.9 million by $2.5 million. The company also controlled expenses, which declined by $7.9 million.
Among the shining lights in Broadcom’s results was ServerWorks, which Broadcom acquired in January. ServerWorks accounted for 25% of Broadcom’s sales. Guess that was a good buy.
Conexant, which has been working to stem losses and control inventory, reported that sales in its main business,personal networking,increased 9% from the year-ago quarter. The company said much of that jump can be attributed to stellar sales out of its wireless division, which analysts say,as the Business Journal reported last month,is a key part of the company’s core business. Conexant slowed its burn rate to $40 million in the quarter, compared to $61 million in the prior quarter.
The quarterly reports probably are more symbolic than anything else. That both companies were able to improve their top lines,despite that the Sept. 11 attacks stymied the critical last weeks of the quarter,signals the bottom of the chip cycle may have been reached. That was the feeling two weeks ago when the Nasdaq, fresh off the positive elements of Broadcom’s and Conexant’s results, jumped up ahead of other chipmakers results.
That has led some analysts to more openly talk about a chip rebound in the first half of next year,only two short months away. In talking about Broadcom’s results, Robertson Stephens analysts Arun Veerappan said, “We believe that a reasonable pick-up in the first half of calendar year 2002 can occur only if the inventory correction is completed by the December quarter and the global economic environment begins to stabilize.”
Help With Anthrax?
One Orange County company has something to say about the threat of anthrax.
Santa Ana-based Intellicon Inc., a developer of ultraviolet technology for industrial uses, recently announced a product called the BioSweeper.
The device is portable and can be used to kill virus, bacteria and spores on everyday objects, including mail. Using ultraviolet technology, the BioSweeper could be useful against virtually every biotoxin, the company claims.
According to Intellicon, the operator positions this device over any surface including electronics, walls, carpet, desktops, paper and other materials to detoxify areas and stop harmful threats.
“The portability of the Bio Sweeper puts a high quality technology in the hands of the team members where it needs to be: On the scene,” said Intellicon Chief Executive Gary Halmbacher. “UV-C requires special handling, and until now, its use has primarily been in fixed locations. Although the light is absolutely lethal to anthrax, most hazardous situations are on remote locations and do not have the luxury of sending a building, for example, off to a lab. So, we are bringing it to them.”
Microsemi Progress
Irvine-based Microsemi Corp. announced recently that it is making good progress on one of its key products,light-emitting diode chips,to be released by the end of this year. The chip can be used in certain consumer electronics such as mobile phones and handheld computers.
The new chip would be a big step for Microsemi, which has been working hard to get the chips out so it can secure a berth in these markets, which analysts expect to grow at compound growth rates in the next few years. While such chips comprise relatively little of Microsemi’s overall business, the company has said it sees such chips comprising more of its product base in the future.
The company has been testing the chips and has sent out samples to customers for their own private tests. “We are quite pleased with our first results,” said Microsemi’s business development director Steve Litchfield. “We are confident that these first products are the right combination of performance and cost, enabling us to position ourselves as a leading U.S. supplier of high-brightness LEDs.”
QLogic on Forbes
Aliso Viejo-based QLogic Corp. landed a spot on Forbes 200 Best Small Companies in America list for 2001 for the third straight year. The list, which appears in Forbes’ Oct. 29 issue, ranks companies that have cleared a series of stringent hurdles based on return on equity, sales and earnings-per-share growth.
QLogic was the second most profitable company on the list and ranked No. 25 overall. The company also ranked No. 11 in market value and 50 in sales.
“We are pleased to be a member of the elite Forbes 200 for the third year in a row,” said H.K. Desai, QLogic’s chief executive. “In a challenging economic climate this year, we exceeded $300 million in revenue.”
DSL Study
For those skeptical small-business owners who think high-speed digital subscriber lines can’t be helpful to operations, SBC Communications Inc. hopes to sway you. The parent Pacific Bell commissioned industry think tank The Yankee Group to survey small businesses about their views on DSL.
According to the survey results, three out of four small businesses said high-speed Internet service helped improve productivity and half said it made them more competitive.
“After upgrading to broadband, small businesses quickly recognize the return on investment from high-speed DSL Internet service across all business areas. As they begin to take advantage of new applications, the value of their high-speed service continues to increase,” Yankee Group analyst Mike Lauricella said.
