SANTA CLARA, Calif. -- In a corporate restructuring aimed at further sharpening its communications market focus, Integrated Device Technology
Inc. here announced Monday it is configuring of its internal product groups to
create the Internetworking Products Division.
The IPD unit "combines and redirects" IDT's microprocessor division,
switching products group, and networking products division with an aim
toward developing application-specific solutions for voice, data, and
"With nearly 75% of our revenues generated by products sold to communications customers, we have identified those competencies we can further capitalize upon and gathered their strengths in the Internetworking Products Division," said Jerry Taylor, president and chief
executive of IDT, based here.
At the heart of the realignment, IDT's new division is assigning existing
divisions with a tradition of specific product development with the new
task of tackling customer- and market-driven applications. The processor
division in particular will shift its focus from developing
high-performance standalone chips to ones able to deliver more functions
for networking applications, the company said.
With more than 50 design engineers, the new division's initial goals include accelerating development of communications ASSPs, including ATM and TSI/TDM switches, high-speed PHYs and communications processors. Target applications include DSLAMs, Voice-over-Internet Protocol gateways, ATM switches, wireless basestations, home networking, and SoHo routers.
"IDT is focusing its resources where we can make the greatest impact,"
said Dave Cote, vice president of Communications ASSPs at IDT. "We've seen
great success in the acceptance of our networking and switching products
in emerging markets. This experience and expertise, coupled with IDT's
history of innovation in microprocessor technology, makes IPD a strong
foundation for growing IDT as fast as the high-growth communications
markets it serves."
Meanwhile, Clear Logic Inc. today said that IDT has agreed to reduce its
81% equity stake in the company in exchange for $22 million in
redeemable preferred stock. Upon completion of the transaction, IDT will
hold 56% of Clear Logic's common share equivalents and a total of
$34 million of the company's debt.
"We are grateful to IDT for believing in our concept and providing initial
funding," said Al Huggins, Clear Logic's CEO. "We have received good preliminary interest from both potential funding partners and strategic partners. We are in the early phases of examining the receptivity of public capital markets."
Clear Logic, of San Jose, which sells a line of low-cost drop-in
replacement ICs for Altera Corp.'s programmable-logic devices, was founded
in May 1996 as a venture subsidiary of IDT.
"IDT has had other venture investments that have achieved excellent
financial success, and this transaction moves us towards a similar
position as a passive, minority investor," said Alan Krock, IDT's chief
financial officer. "The present capital restructuring of Clear Logic gives
the company the ability to tap into larger sources of capital from a
broader investor base. A broader universe of funding sources will enable
Clear Logic to accelerate new product development and reach the IPO stage
much more quickly."