Oak Technology Inc., a supplier of controller chips for opticalstorage and digital imaging systems, today announced the acquisition of TCD Labs Inc.,
a developer of software for compact-disk recording technology.
Oak said software from Tucson, Ariz.-based TCD Labs will be combined with its existing
CD-RW controllers to offer a complete optical storage solution to manufacturers of PCs
and disk drives for consumer applications.
"The TCD acquisition is Oak Technology's first entry into the consumer market and is an
instrumental piece of our CD-RW strategy," said Young Sohn, president and CEO of the
Sunnyvale, Calif., company. "With the addition of the TCD software to our product line, we can
now provide both drive makers and PC OEMs with an integrated, retail-ready software
solution. This allows consumers to take full advantage of the data capture, sharing, and
archiving capabilities of the CD-RW format," he added.
TCD Labs' software uses a CD-RW drive to create or copy consumer audio, video or
computer-data CDs. Oak Technology said the software's drag-and-drop user interface is
designed to ensure ease of recording capability in all Microsoft Windows-based
environments, and is universally compatible with all CD-RW drives and controllers.
The financial terms of the acquisition were not released, but Oak Technology said all
assets of four-year-old TCD Labs will be fully absorbed into its company structure and
serve as the base for a newly created Optical Media Software Group. The former
president of TCD Labs, Felix Nemirovsky, will serve as general manager of the new group.
In addition, Oak said it will also retain existing TCD Labs customers, such as Symantec,
TDK, Plextor, and Liquid Audio, while expanding its customer base to include other key
drive makers and PC OEMs.
With consumers gaining more access to digital music, video and movies over the Internet
and digital-media technologies, the ability to personalize and archive data on CD-RW
systems is growing in demand, according to Nemirovsky. "More than 30 million CD-RW
drives needing CD recording software will be shipped this year, with an expected 60
million to be shipped next year," he said. "Prices are dropping quickly on CD-RW drives
and media, rapidly increasing the number of drives shipped to entry-level users."