Intel Invests $52 Million in Xircom

Intel Corp. has made a $52-million investment in Thousand Oaks-based Xircom Inc., a 10-year-old manufacturer of communications products, in return for a 20% stake in the company. Xircom makes products to connect portable computers to corporate networks, the Internet and online services. The Santa Clara-based chip giant, which announced record profits Monday, has been quietly investing in small companies with promising technology, particularly in communications and software that it deems complementary to its core microprocessor business. Xircom posted a profit of $6 million on sales of $193.3 million for its last fiscal year. After six years of growth, Xircom stumbled because of increased competition. But a shift in focus to portable computers bought a remarkable turnaround, resulting on one of the best comebacks in Southern California business last year, sending the company’s stock soaring 75%. Intel shares lost $5.125 to close at $142. Xircom shares were down $1 closing at $19.625, also on Nasdaq.