3Ware 2009 Annual Report Download - page 3

Enterprise
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SMB & Managed ConsumersDatacenters Telecom
www.appliedmicro.com
Over the next few years, AppliedMicro will continue to invest in developing low-power, multi-
gigahertz processors in 40 and 28 nanometer cores. To be successful in this market, we will
need to move to designing and developing our own cores. We believe this investment will drive
our growth in our key markets and establish us as a dominant player.
Building on a strong base of current SONET and OTN products, AppliedMicro will not only
strengthen its leadership position, but will expand into the massive Datacom market with our
Optical and Multi-mode 10GE solutions.
applications. Multipurpose printers are emerging as a key application for our processing solutions in this segment. As devices provide the capability
to print, copy, fax, store, and email, there is an increasing need to provide higher performance processing solutions along with networking capabili-
ties. As we penetrate the SMB market, AppliedMicro is increasingly focusing on providing full solutions to our customers rather than pointed chip
solutions. By providing our customers a reference design that is manufacture-ready, we provide them a competitive advantage by reducing the
time it takes our customers to productize these designs and take them to market. This shift for AppliedMicro has led to much more meaningful
long-term engagements with our customers who now see us as a partner rather than just another supplier.
Power requirements in the home and datacenter markets are changing to match those in the mobile handset world — more applications, more capabilities
within a lower power footprint. As a result, we are investing in product development at next generation technology nodes. These moves are necessary
in order to keep moving down the cost as well as the power curves.
Next generation development and close customer engagements are already beginning to net us some large design wins. For example, our OTN product,
Pemaquid, has won 22 Tier-1 platforms and our Yahara product is winning multiple leading designs in Tier-1 accounts as it approaches full production.
This is a testament to the trust our customers place in our ability to deliver leading edge products within time and cost schedules. Our engagement with
our customers at the platform level also reduces time to market.
Despite the economic challenges, we have emerged from FY09 as a strong company. Our cash and short-term investments were $184 million at the end
of FY09. We also completed the sale of our 3ware business unit to LSI Corporation for approximately $20 million in cash in April 2009. The inventory
levels in the channel and with our customers remain lean, signaling a good sign that end demand is coming back. Our management team and employees
are aggressively focused on executing the vision to transform AppliedMicro into an industry leading solutions provider and partner for next generation
green communications technologies.
Sincerely,
Dr. Paramesh Gopi
President & CEO
AppliedMicro
Embedded Computing – Roadmap Transport and Connectivity – Roadmap
Legacy Network
Processor
PowerPC
Gen 3
Gen 2
Gen 1
5-yr CAGR =
22%
Current Run-rate Products
5-yr CAGR =
19%
Multi-mode
Datacom
Optical Datacom
Gen 2
OTN Gen 2
OTN Gen 1
New SONET