Conexant receives good news; shares rise...

Conexant receives good news; shares rise

Shares of local semiconductor producer Conexant Systems Inc.

bounced Wednesday, when a former subsidiary announced it would repay

about $140 million in cash from debt.

Investors welcomed the news, sending shares of the Newport Beach

company’s stock soaring as much as 28.3% before closing the day at

$2.19, a 21.6% gain from Tuesday’s close of $1.80.

On Friday, the stock closed out trading on Nasdaq at $1.87.

Skyworks Solutions Inc., a former subsidiary spun off by Conexant

in June, announced it would make the payment on Wednesday.

At that time, Skyworks purchased Conexant’s semiconductor assembly

and test facility in Mexicali, Mexico for $150 million. The company

also has an outstanding balance of $65 million from a $100-million

financing deal.

Conexant spun off Skyworks in a partnership with Alpha Industries

Inc. to create a wireless chip manufacturer.

Also on Wednesday, Goldman Sachs analyst Nathaniel Cohn raised his

rating on Conexant to “in-line” from “under perform.”

-- Paul Clinton