Broadcom Creates $50M Foundation for Math, Science

Orange County Business Journal, May 11-May 17, 2009 by Tolkoff, Sarah

Microsemi Buying Technology, Business Units; InteliCloud Hires VP for Marketing Strategy

TECHNOLOGY

Irvine-based Broadcom Corp. is racking up some good karma.

The chipmaker last month set up a $50 million foundation to support math and science programs as well as other community services.

The newly minted Broadcom Foundation is set to give roughly $2 million per year, the bulk of which will go to educational programs.

Other giving will support communities where Broadcom workers live.

Broadcom is big on touting its engineering prowess and wants to have a stake in making sure schools in the area continue to chum out students who are interested in pursuing science and math for their careers.

"As a cutting-edge technology company, where 75% of our employees are engineers, Broadcom has always had a special interest in supporting math and science programs that will prepare the next generation of technology innovators," Chief Executive Scott McGregor said. "Our support for math and science programs is another way to invest in the future (of the company)."

McGregor is Broadcom Foundation's president and chairman.

The foundation is set to begin making grants early next year.

Microsemi's Shopping Spree

Irvine's Microsemi Corp., which makes chips for military, aerospace and industrial uses, is on a bit of a buying spree.

A few weeks ago, Microsemi bought some assets from publicly traded Spectrum Control Inc. for undisclosed terms.

Now it has acquired a unit of Endwave Corp., a publicly traded chipmaker based in San Jose.

Microsemi paid $28 million for Endwave's defense electronics and security business, which makes chips that run radar fences, sensors and other homeland security devices.

Other terms of the allcash deal weren't disclosed.

Microsemi said it expects the deal to add to earnings immediately.

The company said it's set to fold Endwave's products into its product lineup and take on some employees.

Microsemi and Endwave share a lot of the same customers, including Boeing Co., Cobham PLC, Lockheed Martin Corp., Northrop Grumman Corp. and Raytheon Co.

"This acquisition will expand opportunities for Microsemi in next-generation, highgrowth defense electronics applications," the company said in a statement.

Microsemi said it intends to expand the business into related markets such as satellite and space.

Thomas Weisel Partners Group Inc. analyst Tore Svanberg estimates that Endwave sees roughly $5 million in quarterly revenue for the part of its business bought by Microsemi.

"This acquisition could be incrementally positive," Svanberg said in a research note. "We believe this is a continuation of the company's effort to 'move up the food chain' and expand. It also plays into the company's strength as a consolidator."

Local Winners

A handful of leaders from local companies were honored last month at the 15th annual technology industry awards hosted by Torrance-based Technology Council of Southern California, a trade group that covers Los Angeles and Orange counties. The event attracted more than 300 people and took place in Los Angeles.

Local award winners include: Costa Mesabased marketer of account distribution and manufacturing software Syspro Impact Software Inc., which was recognized as software company of the year. It beat out Irvine's Epicor Software Corp.

Fountain Valley's D-Link Systems Inc., a unit of Taiwan's D-Link Corp. that makes networking gear, was named hardware and storage company of the year. It beat out other finalists Costa Mesa's Emulex Corp. and Newport Beach-based Mindspeed Technologies Inc.

Irvine's Blizzard Entertainment Inc., part of Vivendi SA's Activision Blizzard Inc., was honored as entertainment and gaming company of the year.

New Executive

Newport Beach-based InteliCloud Inc., a startup maker of data networking devices, hired an executive to help form it's marketing and sales strategy.

InteliCloud hired Hitendra "Sonny" Soni as vice president of business development.

He is charged with developing InteliCloud customers, resellers and industry partners.

"It's thrilling to take a company that's in a very early stage of its technology and figuring out its go-to-market strategy," Soni said.

Prior to InteliCloud, Soni served as vice president of sales, business development and customer services at Pasadena's Fastsoft Inc.

InteliCloud, which counts half a dozen local workers, makes what it calls a "network in a box," which helps telecommunication companies and others save space and power.

Last month the company closed an initial round of venture funding from Aliso Viejobased Media One Direct LLC.

It plans to use the funds to hire some 20 workers in the next year or so.