8x8 1999 Annual Report Download - page 9

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circuit system. By combining a traditional CCTV system with a remote video monitoring product, and connecting the resulting system to the
public telephone network, a corporate LAN or WAN, or some other network, the video being recorded in the CCTV system may also be
observed at a distant location.
There is a market need for cost-effective, high-quality remote video monitoring products. Traditional CCTV systems by themselves do not, for
example, always provide an effective deterrent for problem employees since they provide no means for monitoring the premises from another
tapes from CCTV systems are generally reviewed only after a major event occurs, employees do not consider themselves at risk even if an
advanced system is installed in the business. Employers need a way to see what is occurring at their business at any time, day or night, and
from any location. A system filling this need becomes an effective deterrent, encouraging employees to act in the same manner with or without
the owner present.
Historically, security equipment manufacturers have responded slowly to demand for remote video monitoring products. Product offerings
frequently have been expensive, offered slow frame speed, required the use of specialized software running on a PC, and/or required the use of
an ISDN line. These factors have inhibited growth of the remote video monitoring market. The price was too high for mass-market acceptance,
the performance was too low for those who could afford it, and the need for specialized software and ISDN lines deterred many resellers of
security products. The Company's initial offering in the remote video monitoring market, the RSM-1500 module, provides a low-cost, high-
quality product using an ordinary phone line without the use of a computer.
PRODUCTS
Broadband Telephony
The Company offers a range of technology products addressing the broadband communications marketplace. Products include semiconductor
software and system level products. The Company's broadband telephony semiconductor products are based on the Company's proprietary
architecture. This architecture combines, on a single chip, a custom RISC microprocessor, a high performance DSP core, static random access
memory and proprietary software, which together perform the core processing functions required by broadband telephony and other digital
communication applications. The Audacity Internet Telephony Processor (ITP) combines telephony protocols with audio
compression/decompression algorithms and implements multiple, simultaneous Internet Protocol phone calls on a single integrated circuit.
The Company's system level products are based upon its proprietary semiconductor architecture and are highly integrated gateway systems
which allow for voice and data communications over broadband networks such as cable, DSL, and LANs.
The table below describes the Company's current offerings in the broadband telephony area:
- Audacity -- The Company recently announced the introduction of its Audacity ITP, which is designed to support IP based phone terminals
and gateways operating over broadband networks. Systems based
5
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PRODUCT DESCRIPTION APPLICATIONS
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Audacity ITP Communications semiconductor for - LAN audio communication systems
IP phone calls. - Cable modem audio communication
systems
- DSL audio communication systems
- Internet phone calls
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Symphony VoIP Module 4-line VoIP gateway for broadband - Cable modem peripheral device
networks for IP telephony
- DSL peripheral device for IP
telephony
- LAN attachment for IP telephony
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