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The past year has been a challenging period for AMCC and the markets we serve. Despite the overall market downturn, we realized a number of significant accomplishments in both our technological advances and our corporate initiatives. We also made great strides in advancing our product offering and creating solid strategic relationships.
Our goal is to enable our customers to extend their competitive leadership with state-of-the-art communications ICs, while reducing their time-to-market, expenses and risks. We believe that the industry downturn has provided us with a unique opportunity to develop stronger relationships with our market-leading customers as they look to reduce their internal development costs. We are positioned to offer our customers “off the shelf”, state-of-the-art, complete pre-integrated solutions as an alternative to in-house development. To this end, we have remained aggressive during the downturn, delivering and introducing innovative new products, such as our first OC-768, 10 Gigabit Ethernet and advanced .13-micron CMOS products. In addition, we remained committed to our core competencies, such as SONET/SDH and ATM, offering a variety of new solutions for these technologies. Because our future success will depend on delivering best-in-class products to top-tier customers in high-growth markets, we have focused our resources on the following areas: Growth Markets, Product Development and Strategic Customers. |
| Growth Markets |
| With the goal of developing a balanced market strategy, we are broadening our target markets to include high-growth areas such as metro transport, switching and routing as well as broadband access. Our capabilities across the entire WAN market put us in a strong position to take advantage of this market-driven strategy. |
| Metro Transport |
| Transport is one of our core businesses and one in which we have established solid technology leadership, particularly in SONET/SDH and DWDM. We offer a broad OC-48 and OC-192 product line, including PMDs, PHYs, concatenated framers, pointer processors and performance monitors with forward error correction. We also deliver industry-leading low power, exceptional jitter performance and proven experience, including third-generation OC-192 devices and first-generation OC-768 products. |
| Switching and Routing |
| Our switching and routing product lines are used primarily in metro applications and include a complement of market-leading products in ATM, IP and SONET/SDH protocols. These products include a family of advanced OC-48 and OC-192/10 Gigabit Ethernet devices consisting of PHYs, framers, network processors, traffic managers and switch fabrics. |
| Broadband Access |
| We offer an extensive product line targeting the broadband access market—including framers, network processors, traffic managers and switch fabrics. These products benefit from our third-generation expertise and are exceptionally scalable. In fact, we were the first to introduce a fully integrated programmable “switch on a chip” that incorporated Gigabit Ethernet. |
| Product Development |
| We are dedicated to offering our customers pre-integrated solutions that reduce their development costs, time-to-market and risks. Our comprehensive product portfolio provides our customers with fiber-through-switch ICs that can be designed into their systems and brought to market in less time and at a lower cost. To sustain our product leadership, we have committed increased R&D resources to advanced .13-micron CMOS development during the past year. In this technology, we introduced both physical layer and switch fabric products with industry leading power/performance characteristics. We also recently introduced our SuperPHYTM family of physical layer devices and our EYEMAXTM technology. SuperPHY is a complete family of 10 Gigabit physical-layer devices optimized to meet the performance, power and cost requirements of customers developing short-reach, intermediate-reach and long-reach systems. Our devices allow customers to reduce operating expenses by leveraging the cost of supplier qualification across multiple applications. Our EYEMAX technology is a combination of analog and digital signal processing which can significantly reduce the cost of a carrier’s network. In addition, we announced a comprehensive OC-768 solution chipset with seamless interfaces for advanced SONET/SDH short- and long-haul applications. |
| Strategic Customers |
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We believe that today’s market leaders are best positioned to emerge from the downturn and we are focusing our efforts on these leaders. We offer these customers greater access to our resources and allow them to influence our product plans and development. We are dedicated to being more than a product supplier to these customers. We strive to be a strategic partner that delivers state-of-the-art integrated solutions to meet their requirements. Our approach allows our customers to conserve R&D resources while gaining access to our extensive development infrastructure, including the latest technologies, proven IP and strong foundry partner relationships.
At AMCC, we are committed to remaining focused and aggressive during this industry downturn—a strategy that we believe will position us for continued market leadership in the future. We remain passionate about the global importance of the communications infrastructure and are committed to bringing value to our shareholders by delivering compelling products to this market. We would like to thank every AMCC employee, customer and stockholder for their continued support and dedication. |
 David M. Rickey Chairman of the Board and Chief Executive Officer |
 Douglas C. Spreng President and Chief Operating Officer |
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