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How Conexant ended up filing for Chapter 11

3/5/2013 08:01 PM EST
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kshyam31
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re: How Conexant ended up filing for Chapter 11
kshyam31   3/7/2013 7:51:12 PM
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Conexant had a choice to raise convertible debt or issue shares when they hit $12B in mkt cap. PMCS, AMCC etc issued shares and diluted and stock went down a bit as it was bubble time anyway. Conexant CFO decided to issue Convertible Debt and management cashed out of the stovk. Most debt did not convert and after a decade they stil have 100s of millions left to pay. Other comments in this article are spot on. How a great technology company can be mis-managed to bankruptcy, they need to learn from erstwhile Conexant senior leadership.

Youself
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re: How Conexant ended up filing for Chapter 11
Youself   3/8/2013 12:21:27 AM
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Having worked at the early days in both companies, I can tell you the two mgmt teams were miles apart. the Henry's were brash, disruptive, and forward looking, CNXT (names to remain nameless) were conservative and content with a thriving analog modem business which unknown to their near sightedness, looked like it was going up into the clouds, but actually was about to fall off a cliff.

MClayton0
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re: How Conexant ended up filing for Chapter 11
MClayton0   3/8/2013 12:57:10 AM
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Broadcom certainly benefitted by hiring away the best and brightest from Conexant, perhaps getting design, process, and customer ideas in the process. The telecom bubble (not the dot-com bubble) was the big disaster. Stock dropped at Nortel from 100 to 1 dollar, with big 3x gains from $1 to $3 for the bottom fishers. That magnitude certainly highlighted the problem with the entire broadband vision. 1. Fiber Optic drivers and cable were put in place with great speed, giving 8x and then 4x again speed improvements, for the backbone systems from city to city, country to country. That was a 15 year glut in capacity, as nobody was working on "the last mile" at that time. 2. Instead of a 2x jump every 2 years roughly, like Moores law in chip world, these guys thought that they could create 8x improvement immediately, and then 4x more every few years, playing color games in fiber...which they did, as telecoms and cable people competed to get to each city, then each zone, and "some day" link up to my house and your house. 3. So all the old Conexant CEO's and VP's can blame the telecom industry for creating a huge short term bubble, and great opportunity for those that saw it coming. See Qualcomm who had cellular as well as internet IP in place, to weather the storm and cash in on the convergence. 5. What next for Conexant? The food is good in Newport, as is the sailing, so they should be able to hire a top notch CTO and CEO and CFO team that may take advantage of the lower debt load now, and maybe they can hire back a few of the best and the brightest and maybe change the brand name?

chanj0
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re: How Conexant ended up filing for Chapter 11
chanj0   3/8/2013 4:36:18 AM
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I'm not so sure the voice processor will be in high demand given today's processors are so powerful. Considering power efficiency, 1 less chip will definitely reduce overall power consumption. The future of a company is typically relying on the vision of the management team. The vision may turn into gold. Unfortunately, if the team fails, the workers suffer. It is unfortunate that Conexant has to file Chapter 11. I do hope the team successfully revives the company.

Andigit
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re: How Conexant ended up filing for Chapter 11
Andigit   3/8/2013 5:00:02 AM
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Any turnaround for the company needs a new CEO and executive team. The same goes for Mindspeed. These are walking dead companies that need fresh new direction.

WireMan0
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re: How Conexant ended up filing for Chapter 11
WireMan0   3/8/2013 5:10:52 PM
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A free market roots out inefficiencies.

pgwodehouse
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re: How Conexant ended up filing for Chapter 11
pgwodehouse   3/8/2013 10:54:38 PM
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Isn't Conexant owned by Golden Gate Capital? Do they have other creditors?

Charles Tran
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re: How Conexant ended up filing for Chapter 11
Charles Tran   3/9/2013 7:23:21 PM
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Conexant had the best engineers, advanced products, and strong financial lineup. "Forgive but never fortget their name." John F. Kennedy. Dwight Decker,Dan Artusi, Scott Mercer, Christian Scherp, Sailesh Chittipeddi and its cronies effectively wiped out everything with their financial expertise. Chapter 11 is the best solution for Conexant and put it out of misery. CNXT shareholders and its employees (ex and current) are the only victims, gone with their saving, trust, and retirement. RIP.

Charles Tran
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re: How Conexant ended up filing for Chapter 11
Charles Tran   3/9/2013 7:30:52 PM
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You have to look beyond all the rosy announcements and blames from CNXT management. Thanks to financial arrangements, all the money at Conexant is long gone. CNXT small investors and CNXT employees are the only victims to see their hopes vaporized before their eyes.

Charles Tran
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re: How Conexant ended up filing for Chapter 11
Charles Tran   3/9/2013 7:33:13 PM
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It was the last biggest mistake from Conexant to hire Sailesh Chittipedi and his cronies.

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