That technology hangover lingered a little longer than you might have thought.
Orange County saw a decline in tech jobs in 2004 versus 2003, according to the American Electronics Association’s California Cybercities 2006 report.
The decline was small, and much smaller than those of prior years, when the tech meltdown was in full force.
The number of local tech jobs went from 99,000 in 2003 to 97,700 a year later, a 1.3% drop.
OC lost 5% of its tech work force in 2003. In 2002, it shrank by 10%, or 11,600 jobs.
The county’s 2004 loss was in line with that of the state. California’s tech employment saw a 1% decline in 2004 with the loss of 10,600 jobs.
OC fared much better than the state in 2003, when California saw a 7% loss in tech jobs.
My money says that when the numbers for 2005 are tabulated, we’ll see some growth.
The county came in as the state’s fifth-largest technology hub in 2004. And here’s the interesting thing: OC ranks in the state’s top five by employment in all 16 tech sectors.
The largest are computer systems design and related services with 15,000 jobs, telecommunications services with 14,300 jobs, and defense electronics manufacturing with 9,900 jobs.
That makes OC the most diverse of any tech hub in California. And that means some good salaries. Tech workers earned an average of $73,600, or 63% more than the county’s average private sector wage.
One other thing. Northern California isn’t that much bigger than the Southland when it comes to tech. Northern California employs 439,000 tech industry workers, while Southern California had 418,000.
Conexant Coverage
Credit Suisse’s Jeff Loff now is the primary analyst covering Newport Beach-based Conexant Systems Inc., albeit with a “neutral” rating.
Loff gave the chipmaker the so-so rating with a target price of $3.50. At last check, Conexant was trading at around $2.40.
The analyst likes the company’s position in chips for set-top boxes,and Conexant’s new chips that could strengthen its place in the segment this year.
Driving chips for set-top boxes, according to Loff:
Englewood, Colo.-based EchoStar Corp.’s summer rollout of a high-end box using a full Conexant chip lineup. EchoStar owns satellite TV provider Dish Network.
A high definition, “full system” design for a box used by DirecTV Group Inc. of El Segundo.
International sales. Europe and Asia led growth in the March quarter.
Chips for digital subscriber lines are another bright spot.
“We expect product cycles in DSL and satellite set-top boxes to drive continued revenue momentum and margin improvement for Conexant,” Loff wrote.
But the company has some risks, which led to the “neutral” rating.
Competitors, including Broadcom Corp., are fierce. And customers could delay rollouts.
One of the biggest concerns is Conexant’s balance sheet. The company’s $733 million of short-term debt presents a big “overhang.” The company is raising money to pay it off. But any “disruptions” could prompt a road show to raise money.
Conexant got rid of one legal issue. In May, the company agreed to pay a lump sum of $70 million to Texas Instruments Inc. to settle a DSL patent dispute, removing a key “overhang” for the stock, Loff said.
In a few weeks, Conexant is set to give an update on its turnaround plan, which now is about a year-and-a-half old.
Wall Street analysts expect an adjusted gain of $14.4 million for the quarter ended June 30. The company posted a loss of $19.2 million during the year-ago period. Revenue is expected to hit $251 million, up 27%.
Anaheim Goes Wireless
It’s official. You can go wireless in Anaheim.
Atlanta-based EarthLink Inc. late last month unveiled the initial phase of its wireless network in Anaheim, the first of what the company hopes will be many.
The network has been in the works for several months. Anaheim is looking to it to distinguish itself among other cities with tech credentials, such as Irvine.
Anaheim is one of the first larger U.S. cities to start offering wireless service. Others are planning to do so.
Unlike some, Anaheim’s isn’t free.
The cost is $22 a month, which includes some eight mailboxes and some other goodies, including a junk e-mail blocker. Some customers also get a wireless modem for use at home.
For occasional users, EarthLink offers rates ranging from $4 for an hour to $16 for a three-day pass.
Lantronix Settles
It took a while. But it looks like Irvine-based Lantronix Inc. is about to get rid of a regulatory headache.
The maker of networking products said late last month it reached a preliminary settlement with the Securities and Exchange Commission. The move settles a dispute over a financial restatement back in 2002.
The company said it wouldn’t be paying any financial penalties as part of the settlement. Lantronix neither admitted guilt nor denied wrongdoing in the settlement.
The SEC still must sign off on the deal.
The Justice Department started looking at Lantronix in 2002 over allegations the company misled investors with its accounting practices following the tech crash in 2000.
Lantronix restated its 2001 financial results, eliminating about $7.4 million in sales that year.
The company makes devices that allow electronic devices, such as bar code scanners, point-of-sale terminals and automated teller machines, to be accessed and controlled over the Internet or a network.
