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Technology Stocks : Broadcom (BRCM) -- Ignore unavailable to you. Want to Upgrade?

To: Randy Nuss who wrote (934)	3/1/1999 10:57:00 AM
From: Ron Dior	Read Replies (1) \| Respond to of 6531

Seems like it is to early to tell whether or not this will be a real threat to BRCM. What does BRCM have to combat this advancement made by CNTX? I do not know much about this technology (yet), but it would seem that CNXT will be inferior because of being software driven. Please correct me if I am looking at this the wrong way. Ron Dior

To: Randy Nuss who wrote (934)	3/1/1999 7:19:00 PM
From: Secret_Agent_Man	Respond to of 6531

#1 not short March 1, 1999 Conexant Systems Says It Is Planning Multiple-Function Cable-Modem Chip By DEAN TAKAHASHI Staff Reporter of THE WALL STREET JOURNAL Conexant Systems Inc. is planning a chip that contains all electronics necessary for a cable modem, a potential cost reduction for the Internet-access devices that poses competition for fast-growing Broadcom Corp. The Newport Beach, Calif., company spun off in December from Rockwell International Corp., said its forthcoming CN9414 InfoSurge product handles communications functions that typically require multiple chips. Besides hardware savings, Conexant said the chip can be upgraded with new software to adapt to changes in communication standards. Cable modems can transfer data as much as 1,000 times as fast as standard computer modems, giving users faster access to graphics and pictures on the Web. The new chip, which is being announced Monday, could reduce the price of a modem by about 25%, said Dwight Decker, Conexant's chief executive officer. Mr. Decker is hoping the product will leapfrog Broadcom, the Irvine, Calif., chip maker that has about 80% of the cable-modem chip market. That position has helped Broadcom's stock to quintuple since it went public last year. Henry T. Nicholas, CEO of Broadcom, said he expects to retain a significant advantage. Where Conexant relies on software to adapt to changing standards, Broadcom believes it has an inside track in setting them. Consequently, it can build features into circuitry to produce less-expensive chips. The race is too early to call. Conexant won't go into volume production of its chip until the third quarter, giving Broadcom time to come up with other responses. "Sure Broadcom has the leadership now, but the market is still small," said Gerry Kaufhold, an analyst at market researcher Cahners In-Stat Group in Scottsdale, Ariz. "But they're going to get more competition as the market becomes more attractive to the bigger companies." Mr. Decker said the cable modem chip could also be used in digital set-top boxes, which can add new services such as Internet access and telephone service to traditional cable TV service. Broadcom's Class A stock closed Friday at $60.1875, off $2.8125, on the Nasdaq Stock Market. Shares of Conexant declined $1.1875 to $17, also on Nasdaq. interactive.wsj.com