Zarlink has sold the assets of its packet switching product line to Conexant Systems for cash and other consideration, including a cash payment at closing of US$5 million and additional amounts based on revenue performance of the product line over the next two years. Based in Irvine, California, Zarlink's packet switching product line has developed a range of Fast Ethernet aggregation switches for network access equipment.

Kirk K. Mandy, President and Chief Executive Officer, Zarlink Semiconductor says: "The packet switching business is not core to Zarlink's long-term strategy, but its leading technology will prosper as part of a company with the scale to succeed in a competitive market. This transaction allows us to focus on key growth initiatives in the network communications, optoelectronics, ultra low-power wireless and analog foundry marketplaces."