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rick.merritt
iniewski
What is revenue split between storage, optical and wireless?
PMC’s Lang talks of comms, storage and mergers
Rick Merritt
12/5/2012 7:01 AM EST
Outlook for optical, wireless telecom
Turning to the telecom markets traditionally core for PMC, Lang noted carrier spending in 2012 “has been weaker than anyone expected,” citing Europe’s financial crisis and reduced spending by China’s top carriers.
“More recently there’s been some positive data points that could lead to a healthier 2013,” he said, noting AT&T’s announcement of plans to boost spending and signs China might award licenses by the end of 2013 for its 4G TD-LTE technology.
In optical core nets, “the big transition to packet networking really hasn’t happened other than in access networks and PONs,” Lang said. Nevertheless, PMC has rolled out OTN components to help with the shift which new carrier Ethernet standards could help accelerate.
In wireless, PMC’s WinPath3 network processors have started to gain traction with designs in six to seven of the top ten wireless backhaul systems. The chips acquired with Wintegra took longer than expected to get into production but are set to become “a $40-$50 million-a-year business that’s poised to grow nicely,” Lang said.
A new integrated antenna chip set for radio head ends holds promise, but won’t appear in trials until the middle of next year. Lang suggested PMC has 10 Gbit/s PON components ready for trails in Japan which is expected to pioneer that next-generation, last-mile market.
“In our three major segments of storage, optical and wireless, we feel like we have technical pieces that serve us well, and we feel we have the scale to participate there,” Lang said. “At a broader level, the industry is ripe for some consolidation, and PMC can, and will and has participated in that,” he said.
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Turning to the telecom markets traditionally core for PMC, Lang noted carrier spending in 2012 “has been weaker than anyone expected,” citing Europe’s financial crisis and reduced spending by China’s top carriers.
“More recently there’s been some positive data points that could lead to a healthier 2013,” he said, noting AT&T’s announcement of plans to boost spending and signs China might award licenses by the end of 2013 for its 4G TD-LTE technology.
In optical core nets, “the big transition to packet networking really hasn’t happened other than in access networks and PONs,” Lang said. Nevertheless, PMC has rolled out OTN components to help with the shift which new carrier Ethernet standards could help accelerate.
In wireless, PMC’s WinPath3 network processors have started to gain traction with designs in six to seven of the top ten wireless backhaul systems. The chips acquired with Wintegra took longer than expected to get into production but are set to become “a $40-$50 million-a-year business that’s poised to grow nicely,” Lang said.
A new integrated antenna chip set for radio head ends holds promise, but won’t appear in trials until the middle of next year. Lang suggested PMC has 10 Gbit/s PON components ready for trails in Japan which is expected to pioneer that next-generation, last-mile market.
“In our three major segments of storage, optical and wireless, we feel like we have technical pieces that serve us well, and we feel we have the scale to participate there,” Lang said. “At a broader level, the industry is ripe for some consolidation, and PMC can, and will and has participated in that,” he said.
Related stories:
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rick.merritt
12/5/2012 10:44 AM EST
Can PMC make a go of it on its own long term?
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iniewski
12/5/2012 2:02 PM EST
What is revenue split between storage, optical and wireless?
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rick.merritt
12/6/2012 10:45 AM EST
Storage is ~ 65%.
Not sure how optical/wireless break out but I expect optical is the larger of the two as the wireless initiative is new since Lang arrived in 2008.
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