NAPA, Calif. After a failed bid in 2004, silicon foundry specialist Jazz Semiconductor Inc. on Monday (April 24) filed for another initial public offering (IPO).
Jazz (Newport Beach, Calif.), a spin-off from Conexant Systems Inc., hopes to raise up to $105 million in the IPO, according to the company’s S-1, which was filed with the U.S. Securities and Exchange Commission (SEC).
The company plans to trade on the Nasdaq under the symbol “JAZZ.” Cowen & Co., Needham & Co. and Wachovia Securities are underwriting the IPO.
Jazz provides specialized foundry services based on silicon germanium (SiGe) and other technologies. In 2005, the company’s sales were $199 million, compared to $219.5 million in 2004, according to the S-1. In 2004, the company had sales of $185.2 million.
It has never made a profit since its formation in 2002. The company lost $6 million in 2003, $4.3 million in 2004 and $11.5 million in 2005, according to Jazz.
In 2005, Conexant and Skyworks Solutions Inc., an entity that resulted from the spin-off of Conexant's wireless division, together accounted for 60.5 percent of Jazz’ revenues.
“We expect that we will continue to be dependent upon these formation customers for a significant portion of our revenues for the foreseeable future,” according to the S-1.
“We have entered into wafer supply agreements with Conexant and Skyworks; however, the minimum purchase requirements under those agreements terminated in March 2006 and the initial term of these agreements expire in March 2007,” according to the documents. “We expect that as Conexant and Skyworks transition from their current designs to next generation designs, particularly with respect to designs based on standard process technologies, their business with us will decline significantly unless we capture a significant portion of their new designs based on specialty process technologies.”
Other customers include Marvell Technology Group Ltd., RF Micro Devices Inc., Freescale Semiconductor Inc., Airoha Technology Corp., Xceive Corp. and Mindspeed Technologies Inc.
In 2005, Jazz scrapped plans to file its original IPO. Jazz was ranked as the world's tenth largest pure-play foundry in 2005. It jumped from 12th place in 2004 to the tenth spot in the 2005 rankings with 1.1 percent market share, according to Gartner Inc.