Comms chips

Phyworks Finds a Home

5:15 PM -- Phyworks Ltd. seems to have done well for itself, getting bought by Maxim for $72.5 million in cash. (See Maxim Acquires Phyworks.)

Phyworks got profitable on the strength of selling integrated PON transceiver chips, and by 2008, the company was telling me about revenues of just $10 million a year. (See Phyworks Works It.)

There was also mention of eyeing 2010 as an IPO date. That was pre-recession, and even then, it seemed hopeful.

I don't have a more recent revenue estimate for the company, but a $72.5 million buyout says it's ramped up the revenue. The company's initial market was equalizer chips for 10-Gbit/s transmission over copper, so as PON approaches 10 Gbit/s, it makes sense that Phyworks would have some useful tricks up its sleeve.

Maxim Integrated Products Inc. (Nasdaq: MXIM) tends to stay out of the press. Its mixed-signal chips tend to be too esoteric to fit in dumbed-down headlines like "100G Go Boom." And its stuff is good enough, and the company well established enough, that the customers who need to know about it already know about it.

What little I know about Maxim comes from a briefing at one of those financial conferences, where dozens of companies convene to state their case to investors. The strategy, at least then, was to stick to the high end: Find an integrated mixed-signal part that one customer needed, then later expand the idea to the broader market. On the surface, it seems like a nice home for Phyworks.

— Craig Matsumoto, West Coast Editor, Light Reading

paolo.franzoi 12/5/2012 | 4:24:19 PM
re: Phyworks Finds a Home

Saying their products are good in any way is rather dubious for anybody that really works in the analog world.  For digital guys that need the odd analog part, well sure....



Pete Baldwin 12/5/2012 | 4:24:18 PM
re: Phyworks Finds a Home

Fair enough - I stand corrected, it would seem. I'll admit I'm not an expert analog engineer.

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