4/16/2004 - IDTTM (Integrated Device Technology, Inc.; Nasdaq: IDTI), a leading communications IC company, unveiled plans to accelerate the shift from proprietary to standards-based serial switching and bridging semiconductor solutions with its entrance into this fast-growing market. Key to the company’s efforts in this arena are the pending strategic acquisition of privately held ZettaCom, Inc. and the creation of a new division tasked with developing a strong technology roadmap for standards-based products to address the market for serial switching and bridging devices.
“Our aggressive commitment to the serial switching market underscores our stated goal to raise our value proposition as a leading supplier of communications ICs and to expand our portfolio of products that accelerate packet processing,” said Greg Lang, IDT president and CEO. “We believe our strong and immediate presence in the serial switching market will help drive new standards, such as Advanced Switching, and more quickly move the industry toward higher cost efficiencies for network equipment.”
The new serial switching division is built upon the acquisition of ZettaCom, a privately held, fabless network communications IC company that has been developing switch fabric and traffic manager solutions for the past four years. IDT plans to leverage ZettaCom’s switching technology and expertise to deliver high-value products to the industry. Daryn Lau, former ZettaCom CEO and president, will head up the new serial switching division as the vice president and general manager.
“By combining ZettaCom’s fabric and traffic manager with IDT’s proven networking products, the company can address OEM requirements for next-generation serial switch and bridge markets,” said Jag Bolaria, senior analyst at The Linley Group. “With this acquisition, IDT is positioned to become a leader in the emerging standards-based switch and bridge markets, which are expected to exceed $700 million by 2008.”
“IDT’s direction will help solidify and drive the adoption of Advanced Switching-based products and underscores the move from proprietary to standards-based solutions,” says Sean Maloney, executive vice president and general manager, Intel Communications Group. “We expect these new products to complement Intel’s PCI Express and Advanced Switching product direction.”
The Advanced Switching Imperative
According to IDT, the new division’s primary focus will be to create standards-based products based on Advanced Switching and PCI Express architectures. Advanced Switching, originally spearheaded by Intel Corporation, is an emerging technology for chip-to-chip, blade-to-blade and backplane designs. Advanced Switching was created to overlay the core of PCI Express technology, adding transaction-layer capabilities to enable flexible protocol encapsulation, peer-to-peer transfers, dynamic reconfigurations, multicast as well as other capabilities. For more information, you can access the Advanced Switching Interconnect Special Interest Group (ASI-SIG) Web site.
Serial Switching Roadmap
IDT expects the serial switching division to be fully staffed by the end of this quarter. The approximately $35 million cash acquisition of ZettaCom is planned to close by the end of April and its employees integrated within the serial switching division. IDT is in the process of developing its technology and product roadmap and over time plans to add internal and external resources to strengthen the division. The serial switching division expects to unveil its first series of products later this year.
IDT is a global leader in preemptive semiconductor solutions that accelerate packet processing for advanced network services. IDT serves communications equipment vendors by applying its advanced hardware and software technologies to create flexible, highly integrated solutions that enhance the functionality and processing of network equipment. IDT accelerates intelligent packet processing with products such as switching solutions, network search engines (NSEs), programmable content inspection engines (CIEs), flow-control management (FCM) ICs and its family of InterpriseTM integrated communications processors. The portfolio also comprises products optimized for communications applications, including telecom products, FIFOs, multi-ports, and timing solutions. In addition, the product mix includes high-performance digital logic and high-speed SRAMs to meet the requirements of leading communications companies.
Headquartered in Santa Clara, Calif., the company employs approximately 3,100 people worldwide and has a wafer manufacturing facility in Oregon, and test and assembly facilities in the Philippines and Malaysia. IDT stock is traded on the Nasdaq Stock Market® under the symbol “IDTI.” The company is included in the S&P 1000, which is a combination of the S&P MidCap 400 and S&P SmallCap 600 Indices, and is also part of the S&P SuperComposite 1500, which combines the S&P 500, MidCap 400, and SmallCap 600. Additional information about IDT is accessible at www.IDT.com.
ZettaCom is a leader in delivering highly intelligent network silicon solutions that provide a robust, scalable and QoS-aware hardware foundation used in next-generation networking communications equipment. Founded in 1999, ZettaCom delivers highly integrated switch fabric and advanced traffic manager product families to leading networking OEMs. ZettaCom is headquartered in Santa Clara, Calif. Alliant Partners, a subsidiary of Silicon Valley Bank, acted as the exclusive financial advisor to ZettaCom. For more information about ZettaCom visit www.zettacom.com.
IDT, Interprise and the IDT logo are trademarks of Integrated Device Technology, Inc.
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