Adaptec 2001 Annual Report Download - page 8

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8
second). The wide range of products we make operate at different speeds in many of the
product categories listed above.
Non-Netw orking Products
In 1996, w e announced our decision to discontinue the development of custom non-netw orking
chips. Our remaining non-netw orking product is still being sold but no new development has
been done since 1996. Our non-netw orking revenue is generated by one custom semiconductor
device used to control the user interface in a consumer health-monitoring device.
STRA TEGY
Our mission is to provide superior high-speed internetw orking semiconductor solutions to
enable the restructuring of the global information infrastructure. We facilitate the upgrade on
the Internet infrastructure by designing and selling complex chipset solutions based on our
knowledge of netw ork applications, system requirements and networking protocols. To achieve
our mission, we are pursuing the following key strategies:
Leverage technical expertise across diverse base of applications:
We have a history of analog, digital, microprocessor and mixed signal design expertise and we
integrate many functions and protocols into our products. We develop chips that are used in a
broad range of netw orking equipment, such as multi-service switches in the Access portion of
the internet infrastructure, routers in the Metro portion and networked printers in Enterprise
netw orks. We leverage our common technologies and intellectual property across a broad
range of networking equipment.
Many OEM s have recognized they can obtain highly complex, broadband communications
technology “ off the shelf” from companies such as PM C-Sierra rather than dedicating their own
resources to develop custom chips. By outsourcing more of the silicon content in their
netw orking and telecom equipment, OEM s can improve their time-to-market and reduce
development risk w hile differentiating their products in other ways.
Provide first-class products, customer service and technical support:
We work very closely with our customers to ensure they get the best service and technical
support required to assist them with their development efforts. A s the marketplace for
telecommunications equipment suppliers slowly consolidates, we believe our largest customers
and their products will take an increasing percentage of the overall market in their areas of
expertise. This places even more importance on our customer service efforts. Customers such as
Cisco, Lucent, Nortel, Alcatel, Samsung and Hew lett-Packard are aligning their design and
manufacturing operations with key suppliers. In 2001, Cisco selected PM C-Sierra as its
“ Semiconductor Supplier of the Year” and Lucent Technologies named us a strategic alliance
partner.
Take a leading role in industry standards bodies and interoperability initiatives: