BANGALORE, India Ikanos Communications Inc., a fabless developer of high-speed broadband access chips, said it would expand its Bangalore staff from 35 to 80 as the company mulls over a possible IPO.
Ikanos (Fremont, Calif.) joins a growing number of U.S.-based electronics companies expanding design efforts in India. Already a third of Ikanos' engineering staff is located in this center, started two years ago.
The company initially planned an IPO at the end of 2004 but dropped the idea because market conditions were not conducive. Ikanos conceded the current appetite for IPO stocks falls short of its expectations.
Still, Ikanos is profitable and could conduct an IPO this year, said Anoop Khurana, vice president of engineering at Ikanos.
Revenue for 2004 is expected to top $65 million, up from $29 million in 2003, Khurana added.
Ikanos faces a possible shortage of workers with appropriate analog skills required for its expansion effort and hopes to rectify the situation by next year. In addition, acquiring high quality signal processing talent is a problem, according to the company.
This year, Ikanos plans to grow a team for core IP development, said S. Ravi Shankar, managing director of Ikanos Communications (India) Pvt. Ltd.
While expecting the first deployment of its Fx 100/100 Mbps fiber-fast broadband chipsets starting in Japan this year, Ikanos is only starting to talk to India-based carriers for the same purpose. The nation's extensive fiber network remains unlit, and Ikanos does not expect the Indian broadband market to take off for several years.