Here's an example of what sort of problems Conexant has, and why it's so difficult to work with them. Great FAE - absolutely fantastic FAE. Great support, wonderful products.
Then comes the reality: Order a dev kit. No inventory. Order samples. No inventory. Order parts. No call back from the Distributor, nuHorizons. Period.
Our FY2013 for the CX93610 is 25,000 units.
Our FY2014 for the CX93610 is ~240,000 units.
And possibly higher.
So after designing their part into our product, we can't get the parts, and we need to go in another direction. Such a bitter pill to swallow.
That is Conexant.
There was huge mismanagement at the CEO level at this company that has left a lot of people lose their jobs. Not a single CEO had the right technical or marketing background to steer the company and so the downward spiral precipitated by financial mismanagement. The current CEO was a "get lucky person" with an operations background who has neither a marketing or technical background to retarget it to new markets. It still has very good engineers who stuck with the company. It needs a good CEO. It has the DNA to execute well on the engineering front.
I always find it odd when companies involved in what should be a thriving business area, end up struggling or failing. But then again, back in the '90s and '00s, wasn't it obvious to everyone that this ever-important "growth" was primarily achieved through acquisitions? How can any sensible person get excited about that kind of growth?
Conexant spun off from my company, and our group was sold off to another company. Many top notch engineers at Conexant. I have to believe the analysis in the article is correct. Too much of this "growth by acquisition," as opposed to growth by creating new market demand, and an underestimation of the cash suction those acquisitions would create.
Lessons one wishes the politicians and government bureaucrats would also take to heart. Staggering and growing debt will ultimately be the undoing of any organization, including a government.
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.
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.
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.
As we unveil EE Times’ 2015 Silicon 60 list, journalist & Silicon 60 researcher Peter Clarke hosts a conversation on startups in the electronics industry. Panelists Dan Armbrust (investment firm Silicon Catalyst), Andrew Kau (venture capital firm Walden International), and Stan Boland (successful serial entrepreneur, former CEO of Neul, Icera) join in the live debate.