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Essentra Components

<p>Legal, policy, and regulatory frameworks must be addressed as well. Data ownership and the related obligations need to be clearly delineated. For instance, in the healthcare market, there is no question that telemedicine (telehealth) has the potential to become integral to effective care strategies. However, non-technological issues such as licensure of doctors, malpractice liability, and provider reimbursement, at least in the United States, stand in the way of widespread acceptance. Progress has been made, but much remains to be done.</p>

Anadigics Inc. has added some often requested technology to its product portfolio with last week's $28 million acquisition of Telcom Devices Corp., a supplier of photodiodes to the telecom and networking equipment markets.

Telcom Devices, Camarillo, Calif., brings to Anadigics long-wavelength PIN photodiodes as well as fiber optic IC packaging capabilities. The acquisition is expected to address many of the hiccups often associated with the rollout of 10Gbit/s-and-faster fiber optic networks, Anadigics executives said.

S7D25.175000B20F30T_Datasheet PDF

The acquisition of Telcom Devices expands our indium phosphide-based fiber interface product portfolio, increases our customer base, and enhances our product solution set for the growing broadband markets,” said Bami Bastani, Anadigics' president and chief executive, in a statement.

Anadigics said customers have been demanding fully integrated components to speed their products to market. The changing technology landscape in the fiber optic market, where system speeds have increased from OC-192 (10Gbits/s) to OC-768 (40Gbits/s), is forcing OEMs to cut production time, said Tom Lagatta, vice president of fiber optic communications products at Anadigics, Warren, N.J. Our customers are finding it's really hard to get these 10Gbit/s and 40Gbit/s modules and are coming back to us and saying they can't buy a PIN from one guy and an amp from another guy,” he said. They need a complete package.”

Now, according to Lagatta, Anadigics can offer fully matched chipsets together for 10 and 40Gbit/s modules that will combine indium phosphide designs, a much sought after link.

S7D25.175000B20F30T_Datasheet PDF

Anadigics' strategy to offer more integrated components follows recent buyouts of IC WAN companies by bigger communication chip makers like Broadcom, Conexant, and PMC-Sierra, all of which are seeking to beef up their WAN chip lines. Applied Micro Circuits Corp. joined the group last year by paying $4.5 billion for MMC Networks Inc.

But Lagatta said Anadigics' products fit in a different area of the fiber network. AMCC and PMC-Sierra are doing a lot of digital edge circuitry,” he said. While we may pull that stuff in, we're coming from the fiber interface side with photodetector and amplifier [ICs]. In some instances, for example, we may be in the clock-and-data receiving capability. But we're not going to do any sort of digital devices any time soon.”

S7D25.175000B20F30T_Datasheet PDF

Telcom Devices offers digital photodiodes for systems operating at speeds up to 10Gbits/s at wavelengths from 1,300 to 1,550 nanometers; laser backside facet monitors for fiber transmitters; analog photodiodes for optical nodes in cable systems; micromachined lenses for detector arrays; and large-area detectors for instrumentation.

Anadigics said the acquisition should add more than $10 million to its sales next year. The deal follows a less rosy financial outlook for the company, which said its second-quarter revenue could be 25% below the $28.5 million it expects to report for the first quarter. Gross margins are expected to dip to 25% to 30% for the first half of the year.

FREMONT, Calif. — Lam Research Corp. today announced it will eliminate 15% of its workforce, or about 600 jobs worldwide, in response to slowing demand for wafer fab equipment. The layoffs were announced while Lam reported that new orders for tools declined 60% in the first three months of this year compared to the previous fiscal quarter.

Lam said revenues in its fiscal third quarter, ended March 25, fell sequentially 15% to $421.5 million from $494.3 million in the previous three-month period, which ended Dec. 24. Compared to a year ago, Lam's revenues were up 29% from $326.3 million in the quarter last year.

The company reported a net income of $44.4 million, of $0.33 per diluted share, compared to $67.0 million, or $0.48 per share, in the fiscal quarter last year. Lam's earnings fell short of Wall Street's consensus, which was $0.36 per share, based on a survey of analysts by First Call/Thomson Financial.

In Late February, Lam announced cost-cutting moves, including a 10% reduction in executive salaries and five mandatory shutdown days per quarter (see Feb. 28 story).

While these steps have resulted in significant expense reductions, the further weakness in the wafer fab equipment market throughout March has necessitated more aggressive actions,” said James W. Bagley, chairman and CEO of Lam. As a result, we intend to reduce our global headcount by approximately 15%, to be implemented this month.

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