Followers | 36 |
Posts | 13584 |
Boards Moderated | 1 |
Alias Born | 07/22/2003 |
Friday, November 05, 2004 4:13:03 PM
By Chris Kraeuter, CBS.MarketWatch.com
Last Update: 3:56 PM ET Nov. 5, 2004
http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&gui...
SAN FRANCISCO (CBS.MW) -- Agere Systems will debut two networking chips Monday devoted to Gigabit Ethernet, a technology that helps shuttle information quickly around the Internet.
Agere's (AGR.A: news, chart, profile) newest products mark its most significant attempt yet to break into the Gigabit Ethernet market against entrenched competitors Broadcom (BRCM: news, chart, profile), Marvell Technology (MRVL: news, chart, profile) and Vitesse Semiconductor (VTSS: news, chart, profile).
The new chips are used in networking switches sold by equipment manufacturers. Such switches filter and forward packets of information across the Internet. Allentown, Pa.-based Agere makes networking chips used for data storage, wireless and computing applications.
The company has set a goal to capture 2 percent of the Gigabit Ethernet chip market in 2005 and 10 percent in three years, said Ed Roberts, general manager of Agere's Ethernet division.
Agere has lined up two major Asian design companies, Accton Technology and Delta Networks, to use the new chips. Accton and Delta's customers include 3Com (COMS: news, chart, profile), Hewlett-Packard (HPQ: news, chart, profile) and Nortel Networks (NT: news, chart, profile).
Gigabit Ethernet technology can transfer data at a rate of 1,000 megabits per second, compared with Fast Ethernet, which has a transfer rate of 100 megabits per second, and Ethernet, which transfers data at 10 megabits per second.
Most networks operate on Ethernet or Fast Ethernet technology with a transition currently under way to Gigabit Ethernet.
Agere said its chips are different from competitors' offerings because they're more highly integrated, which reduces costs and power consumption.
Its newest chip, the ET4001, can accommodate 48 data ports and works in conjunction with its other new chip, the TruePHY ET1081.
A circuit board for a switch would only need seven Agere chips, compared with 17 comparable chips from competitors, according to the company.
"This certainly is significant for Agere," said Seamus Crehan, a research director at Dell'Oro. "They haven't had that big of a presence in the Gigabit Ethernet market yet, and they've made a number of acquisitions to help them get the teams and technologies to make this happen."
The chips come out of Agere's purchase in August 2003 of Massana for $26 million, as well as the January buy of TeraBlaze for $21 million. Roberts said his Ethernet team now has about 200 employees.
He added that Agere will get revenues from the chips this quarter, but wouldn't be more specific beyond his market share targets.
Crehan said these chips address an installed base of $450 million worth of Fast Ethernet ports, all of which have the potential to be replaced by Gigabit Ethernet.
Lower cost components will help speed the adoption of Gigabit Ethernet, the researcher added, and volume shipments will be more significant through 2005 with peak shipments in 2006 and 2007.
Agere's newest offering appears to drop the price per data port down to almost twice the cost of a Fast Ethernet port, Crehan said. "If they get less than two times per port on a like-for-like device, that should trigger strong adoption."
Likewise, analyst Roy Rubenstein with RHK Research, a consultancy and boutique investment bank, said Gigabit Ethernet is the place to be right now for chips used in networking switches.
The number of ports that Agere is addressing through one chip is a significant jump in capability for the market, he added, and others are moving in that direction. "There are a lot of players jockeying for position right now," Rubenstein said.
Chris Kraeuter is a reporter for CBS.MarketWatch.com in San Francisco.
regards
Recent AGR News
- Form 8-K - Current report • Edgar (US Regulatory) • 09/19/2024 08:40:00 PM
- Avangrid Foundation Provides $45,000 in Grants to Berkshire County Arts Organizations • Business Wire • 09/18/2024 07:29:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/18/2024 11:32:30 AM
- Maine Public Utilities Commission Approves Avangrid’s Request for Merger Exemption • Business Wire • 09/18/2024 12:06:00 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 09/16/2024 08:40:27 PM
- ISS and Glass Lewis Both Recommend a Vote “FOR” the Merger of Iberdrola and Avangrid • Business Wire • 09/16/2024 12:50:00 PM
- Avangrid Welcomes First Class to Newly Built National Training Center • Business Wire • 09/12/2024 05:00:00 PM
- Avangrid Shines With 22 Top Awards in 2024 • Business Wire • 09/10/2024 06:18:00 PM
- Avangrid Begins Installing Modules at Camino Solar • Business Wire • 09/09/2024 06:12:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/06/2024 08:16:01 PM
- Avangrid’s New England Wind 1 Project Selected by Massachusetts In Offshore Wind Solicitation • Business Wire • 09/06/2024 06:21:00 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 09/06/2024 01:10:26 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/05/2024 09:12:52 PM
- Avangrid Announces Receipt of Federal Energy Regulatory Commission Approval • Business Wire • 09/05/2024 08:59:00 PM
- Iberdrola Subsidiary Avangrid Recognized as a Top Employer 2024 in the United States • Business Wire • 09/05/2024 05:49:00 PM
- Iberdrola Obtains Top Employer 2024 Certification in Eight Countries in Recognition of Its Outstanding People Practices • Business Wire • 09/04/2024 06:14:00 PM
- Avangrid Earns Back-to-Back Patriot Award for Outstanding Support of National Guard and Reserve Employees • Business Wire • 09/04/2024 02:00:00 PM
- Avangrid Reports Significant Gains in Customer Service Metrics Across its Utilities • Business Wire • 08/30/2024 03:00:00 PM
- Avangrid Completes Module Installation at True North Solar project • Business Wire • 08/26/2024 06:20:00 PM
- Liberna Charles and Ruth Thompson Named 2024 Women on the Rise by Paradigm for Parity • Business Wire • 08/26/2024 03:16:00 PM
- Avangrid Leverages Data to Boost Grid Reliability and Customer Satisfaction • Business Wire • 08/21/2024 02:56:00 PM
- Avangrid’s DEI and HR Leadership Teams Launch New Effort Following Elevation of Direct Reporting to CEO • Business Wire • 08/20/2024 06:00:00 PM
- Bizarre Forklift Incident Highlights Benefits of a Modern Grid • Business Wire • 08/20/2024 04:20:00 PM
- Avangrid Subsidiaries NYSEG and RG&E Install More Than 700,000 Smart Meters Across Upstate New York • Business Wire • 08/20/2024 02:00:00 PM
- Form ARS - Annual Report to Security Holders • Edgar (US Regulatory) • 08/20/2024 11:05:58 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM