Tuesday, February 4, 2003
Intel is closing its Thousand Oaks - California offices, which had once been the headquarters of Xircom Inc.
“We’ve been streamlining costs across the board, particularly in our communications group,” said an Intel spokesman. “We’re trying to align costs with expenses and revenues. This is part of the overall action to reduce expenses and streamline operations in this environment.”
Intel acquired Xircom two years ago for about $748 million. The networking vendor built PC cards and was one of a series of acquisitions that Intel made at the height of the telecom boom.
“This was not a separate division itself, it was part of a larger communications group worldwide,” the spokesman said.
Xircom has a troubled history within Intel. In November, a settlement agreement was reached with 3Com Corp. regarding three disputed patents between Xircom and 3Com. The settlement cost Intel $15 million. Q2 2002 saw Intel record a $112 million write-off of acquired intangibles, primarily related to Xircom PC cards for wireline networking.
Intel’s spokesman said that Intel would continue to sell products using designs and expertise originated at Xircom, including wireless networking cards for portable computers.
The Xircom offices housed less than 200 employees, the spokesman said. These employees are not being immediately laid off, instead they have a two month period in which to seek alternative employment within Intel, before leaving the company.
By: DocMemory
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