A few miscellaneous items from the SEC filing:
Downstream Cable TV. The Company has recently engaged in new business
opportunities for linear lasers and receivers for cable TV and believes its
products are well positioned to serve this market. The Company further believes
that the upgrade of existing cable networks and the deployment of fiber by the
telephone companies to provide cable TV delivery services is expected to
increase the demand for the Company's products.
Netsoft
In November 1997, the Company agreed to purchase Netsoft Solutions, Ltd.
(Netsoft). Under the agreement, the Company acquired certain assets and the
business operations of Netsoft, a French networking company. The purchase price
paid by the Company was approximately $4,700,000, of which approximately
$2,300,000 was goodwill
RDS
In January 1998, the Company acquired 50 percent of the outstanding stock of
RDS, a Swedish networking company. The purchase price was $8,000,000 in cash.
Re Tax exemption in Israel
In 1995, NBase Ltd. qualified for a program under which it will be eligible
for a tax exemption on its income for a period of ten years from the beginning
of the benefits period. This benefit is due to expire in 2006. NBase Ltd.
received a tax benefit of approximately $1,600,000 in 1998.
The Company does not provide U.S. federal income taxes on the undistributed
earnings of its foreign operations. The Company's policy is to leave the income
permanently invested in the country of origin. Such amounts will only be
distributed to the United States to the extent any federal income tax can be
fully offset by foreign tax credits.
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