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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: T L Comiskey who wrote (1063)	9/13/2000 6:57:14 PM
From: Voltaire	Respond to of 65232

Thanks TL, You know what made me feel so great about your post? Knowing that JW is in it. Thanks, V

To: T L Comiskey who wrote (1063)	9/13/2000 7:26:01 PM
From: T L Comiskey	Respond to of 65232

More on cnxt....... Tim Business News - updated 7:03 PM ET Sep 13 Wednesday September 13 7:03 PM ET Conexant to Spin Off Internet Co. NEWPORT BEACH, Calif. (AP) - Conexant Systems Inc. (NasdaqNM:CNXT - news) announced Wednesday that it will spin off its business that makes software and semiconductors used to operate the Internet into a new, fully independent company. The split will allow the remaining company to focus on developing chips and software for the rapidly growing market for Internet-ready mobile phones and broadband devices for the home. Such devices include cable and satellite set-top boxes and high-speed Internet modems. ``We have created two very strong semiconductor businesses targeting markets that are quite different in many respects,'' William Decker, Conexant's chairman and chief executive officer, said during a conference call with industry analysts. ``Creating two separate companies will unleash both to realize their full potential.'' Conexant shares rose $3.31 to $37.06 at the end of regular trading on the Nasdaq Stock Market Wednesday. Conexant plans to sell stock in the Internet infrastructure business in January. The public offering will be followed six months later by a tax-free distribution of remaining shares to Conexant shareholders. Stockholders probably would get one share of the new company for each share of Conexant, but details of the distribution still were being worked out, Decker said. Executives said they had not decided which company will retain the Conexant name, but the broadband and mobile phone company will keep most of the company's manufacturing facilities. Both companies will have headquarters in Newport Beach. Conexant, with revenues of about $2 billion per year, was created in 1998 in a spinoff by Rockwell International Corp. (NYSE:ROK - news) The personal networking business is expected to generate sales of more than $1.5 billion, or about 70 percent of all revenues, in the current fiscal year, the company said in a news release. Sales of Internet infrastructure equipment are projected to reach $550 million this year