Rambus has always said that at some point their pc related royalties will only be 35% of the total revenue stream. Part of the other 65% has been called the communications segment. The other segment encompasses games ala the Sony PS2.
Here's a pretty good idea of one of the streams of royalty revenue that will be showing up from the communications segment.
Thanks go to to Richard Surkla on the Rambus thread: Message 13874959
biz.yahoo.com
Tuesday June 13, 9:07 am Eastern Time
Company Press Release
Cisco and Brocade Enter Joint Technology Agreement to Interconnect Storage Area Networks Over IP-Based Metropolitan and Wide Area Networks
Companies to Connect BROCADE SilkWorm Fibre Channel Switches and Cisco Catalyst 6000 Multilayer IP Switches
SAN JOSE, Calif.--(BUSINESS WIRE)--June 13, 2000-- Cisco Systems Inc. (Nasdaq:CSCO - news), the leader in networking for the Internet, and Brocade Communications Systems, Inc. (BROCADE©) (Nasdaq:BRCD - news), the leading supplier of Fibre Channel fabric solutions for Storage Area Networking, announced today a multi-phased technology development agreement that will enable customers to seamlessly interconnect SANs (storage area networks) over Internet protocol (IP)-based metropolitan and wide area network infrastructures.
The Cisco/BROCADE agreement will facilitate the interconnection of islands of SANs over IP-based metropolitan area network (MAN) and wide area network (WAN) infrastructures. It will enable the deployment of high-performance SANs spanning multiple remote physical locations and make possible new types of SAN applications that previously could not be implemented over long distances, including disaster recovery, remote data replication, remote data backup, and digital content distribution.
In the first phase of the multi-phase technology agreement, the two companies will jointly develop a Fibre Channel interface for Cisco's Catalyst 6000© family of high-performance multilayer switches. In addition, BROCADE and Cisco will certify the interoperability between BROCADE SilkWorm© Fibre Channel fabric switches with Cisco dense wavelength division multiplexing (DWDM) products, which will enable SAN-to-SAN connectivity over high-speed fiber optic MANs.
Cisco and BROCADE have also agreed to develop additional switch-to-switch connection products in the future to further expand customers' options for connecting BROCADE Fibre Channel-based SANs across Cisco networking infrastructures, supporting a variety of high-speed network interfaces. All products resulting from this agreement will be compliant with ANSI T11 standards.
``More and more of our traditional enterprise customers are realizing the tremendous advantages afforded by adopting e-business strategies -- a business model that dramatically increases their need to store, protect and quickly access vast amounts of electronic data,'' said James Richardson, senior vice president of Cisco's Enterprise Line of Business. ``Our open, standards-based model has allowed us to extend the Cisco end-to-end networking reach to SANs, which in turn provides our customers with both investment protection and agility to quickly deploy emerging network business solutions. An example of this ability, the results of our relationship with BROCADE will enable our mutual customers to optimize their existing IP-based networking infrastructure to interconnect high performance, Fibre Channel-based SANs across the enterprise.''
``BROCADE Fibre Channel fabric switches are the industry's networking foundation of choice to support the data-intensive requirements of storage area networks,'' said Greg Reyes, BROCADE president and CEO. ``This agreement will result in products that will provide seamless connectivity of BROCADE-based SANs over Cisco's networking infrastructure and offer our customers with the best of both worlds: a high performance foundation for storage applications and the ability to interconnect them across their existing MAN/WAN infrastructure. Through this technology agreement, we expect to offer the widest array of options for our customers to interconnect islands of SANs. We believe that the results of this relationship will enable the development of new classes of applications and service offerings.''
``As the SAN market leader, Compaq is excited to work with both Cisco and BROCADE to bring this extended SAN capability to market. It will enable us to bring important new business solutions to our customers,'' said Howard Elias, Vice President & General Manager, Compaq Storage Products Group. ``For example, remote data replication will allow our dot.com customers to efficiently distribute web content worldwide for better Internet response time, and remote disaster recovery will enable storage service providers to deliver higher service levels to their client base.''
About Cisco Systems
Cisco Systems, Inc. (Nasdaq:CSCO - news) is the worldwide leader in networking for the Internet. News and information are available at cisco.com
About Brocade Communications Systems, Inc.
BROCADE (Nasdaq:BRCD - news) is the leading supplier of open, standards-based Fibre Channel fabric solutions that provide the intelligent backbone for Storage Area Networks (SANs). For more information, visit the BROCADE website at www.brocade.com or contact the company at info@brocade.com.
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techweb.com
February 09, 1998, Issue: 992
Section: News
Rambus pushes its interfaces into comm apps
Loring Wirbel
San Jose, Calif. - Rambus Inc. is launching a crusade for greater acceptance of its Concurrent and Direct interfaces in communications applications.
The comms push comes at a time when the Direct Rambus interface is facing delays in adoption as it competes with synchronous DRAM for main memory in PCs (see Feb. 2, page 4)
When used to provide fast access to packet memory, however, Rambus competes only with proprietary solutions or high-end expandable interfaces, such as the Scalable Coherent Interface.
The dedicated push into communications is still in the early stages, said Subodh Toprani, vice president and general manager of the logic-products division at Rambus. The company wants to assign some software engineers to work on efficient handling of Internet Protocol packets for high-speed transfers. Rambus also must expand work with fast-channel specialists, such as Adaptec Inc. and Symbios Inc., to ensure its efforts move beyond Fibre Channel to SCSI, HiPPI and SuperHiPPI.
Beyond theory
Toprani nonetheless said the effort has moved beyond the theoretical; real-world designs have emerged from semiconductor companies and OEMs or are about to emerge from R&D labs. In the fast-channel category, Brocade Communications Inc., working with LSI Logic Corp., embedded Rambus logic in the Silkworm Fibre Channel switch. LSI now offers Rambus interfaces as a standard element of its Fibre Channel ASICs and ASSPs.
In LAN switching markets, Texas Instruments Inc. announced at NetWorld+Interop that the ThunderSwitch II architecture will be based on a Rambus interface among a switching-fabric IC, off-chip memory and TMS320 DSPs used as packet accelerators. Berkeley Networks Inc. (San Jose), which unveiled its Windows NT-based enterprise switch a month ago, has integrated Rambus interfaces into the eCore ASICs in its systems.
This spring, NEC Electronics Inc. will expand Rambus into ATM architectures, using the interface as I/O for a high-performance switching element.
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biz.yahoo.com
BRCD
145 3/4
+11 7/16
Monday May 15, 4:00 pm Eastern Time
Company Press Release
SOURCE: Brocade Communications Systems, Inc.
BROCADE Reports Record Revenues and Earnings for Second Quarter Fiscal 2000
SAN JOSE, Calif., May 15 /PRNewswire/ -- Brocade Communications Systems, Inc. (BROCADE©) (Nasdaq: BRCD - news), the leading supplier of Fibre Channel fabric solutions for Storage Area Networking, reported today net revenues for the second quarter of fiscal 2000 (Q2 00) of $62.1 million, a 489 percent increase over the $10.5 million reported for the second quarter of fiscal 1999 (Q2 99), and a 45 percent increase over the $42.7 million reported in the first quarter of fiscal 2000 (Q1 00).
Net income was $13.3 million in Q2 00, a $14.2 million increase over the net loss of $0.8 million reported for the same period in fiscal 1999, and an 82 percent increase over the $7.3 million reported in Q1 00. Diluted net income per share for Q2 00 was $0.11 compared to a net loss per share of $0.01 in Q2 99 and net income per share of $0.06 in Q1 00.
During Q2 00, BROCADE generated $15.1 million in cash, after purchasing $5.1 million of capital equipment and making equity investments of $5.0 million. Total cash and short-term investments at April 29, 2000 were $111.5 million. Accounts receivable days sales outstanding were 51 days at the end of Q2 00, which is the same as in Q1 00. Inventory represents approximately 11 days of sales on hand (annualized turns of 33 times per year). Annualized quarterly return on stockholder's equity increased from 31.4 percent in Q1 00 to 49.2 percent in Q2 00. Annualized quarterly return on assets rose from 21.6 percent in Q1 00 to 31.8 percent in Q2 00.
Gross margins increased during Q2 00 to 58 percent of net revenues from the 53 percent reported in Q1 00. The margin improvements were principally due to an increased level of shipments of the BROCADE SilkWorm© 2400 and 2800 products and an increased level of sales to the system integration channel. Operating income as a percentage of net revenues improved from 18.9 percent of revenues in Q1 00 to 25.2 percent in Q2 00. Financial results reflect an effective tax rate of 21 percent.
``We are pleased to deliver to our shareholders the fourth consecutive period of quarter over quarter revenue and earnings growth,'' said Greg Reyes, BROCADE President and Chief Executive Officer. ``As data storage requirements continue to increase at incredible rates, BROCADE has achieved a market leadership position in providing a scalable, standards-based networking infrastructure for storage area networks (SANs). The BROCADE brand is now recognized worldwide by customers as representing quality, performance and scalability.''
The award-winning BROCADE SilkWorm© family of Fibre Channel fabric switches and software connects servers with storage devices through a Fibre Channel SAN, enabling companies to access and share storage in a high-performance, manageable and scalable environment. With the completion of six new OEM partnerships this quarter with EMC Corporation, HP, IBM, Intergraph, NCR, and Unisys, the BROCADE SilkWorm switches are now sold by seventeen of the industry's leading providers of systems and storage, who provide more than 90 percent of the world's external storage.
In addition, with the certification of twelve new systems integrator partners this quarter, BROCADE's revenue from the systems integrator channel in Q2 00 accounted for more than 25 percent of total revenues, as compared to five percent of total revenues in Q2 99.
Reyes continued, ``This quarter, we have continued to deliver on all fronts. We have expanded our OEM channel with six new OEM partners, four of whom are shipping BROCADE-branded product. Our products are now available through more than 50 certified BROCADE Fabric Integrators across the world, including Hitachi Data Systems, with whom we have expanded our reseller relationship to offer BROCADE-branded products in 30 countries. In addition, this quarter's growth reflects our significant commitment to providing the highest quality SAN education to the market and our extensive investment in interoperability testing of SAN solutions in multi-vendor environments. With this continued execution, we believe that BROCADE is uniquely positioned to both facilitate the SAN industry's evolution and capitalize on it.''
To support the company's rapid growth and global expansion, BROCADE welcomed three new executive team members in newly-created positions: John Owen as vice president of software; Dave Smith as vice president of SAN Integration Applications and Support; and Jim Cates as CIO.
About Brocade Communications Systems, Inc.
BROCADE is the leading supplier of open Fibre Channel fabric solutions that provide the intelligent backbone for Storage Area Networks (SANs). The BROCADE SilkWorm© family of Fibre Channel switches and software is designed to optimize data availability in the storage enterprise. Using BROCADE solutions, companies can simplify the implementation of Storage Area Networks, reduce the total cost of ownership of data storage environments, and improve network and application efficiency and performance.
Leading systems, applications, and storage vendors have selected BROCADE to provide a networking foundation for their SAN solutions, including Amdahl, CNT, Compaq Computer, Data General, Dell Computer, EMC Corporation, Fujitsu Siemens Computers, Groupe Bull, HP, IBM, Intergraph Computer Systems, NCR, NEC, Network Appliance, SGI, StorageTek and Unisys. In addition, BROCADE counts industry leaders Computer Associates, Emulex, Highground Systems, Hitachi Data Systems Inc., Legato, LSI Logic, ONI Systems, QLogic, StorageNetworks, Tivoli Systems and VERITAS among its strategic partners. For more information, visit the BROCADE website at www.brocade.com or contact the company at info@brocade.com.
NOTE: BROCADE, SilkWorm, SilkWorm Express, Fabric Integrator, Fabric OS, Fabric Weaver, and QuickLoop are trademarks or registered trademarks of Brocade Communications Systems Inc., in the United States and/or in other countries. All other brands, products, or service names are or may be trademarks or service marks of, and are used to identify, products or services of their respective owners.
This news release contains forward-looking statements based on current expectations that involve risks and uncertainties. BROCADE's actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include risks surrounding the development of the emerging market for Storage Area Networks and for SAN switching products, the timely development, production and acceptance of new products and services, and BROCADE's ability to compete in a highly competitive and rapidly changing marketplace. These and other risks are detailed in the Form 10-K, for the year ended October 31, 1999, filed with the Securities and Exchange Commission. BROCADE assumes no obligation to update the forward-looking information contained in this press release.
Brocade Communications Systems, Inc.
Balance Sheets
(in thousands)
April 29, 2000 October 31,
2000 1999
Assets (unaudited)
Current assets:
Cash and cash equivalents $27,859 $25,536
Short-term investments 83,670 63,769
Total cash, cash equivalents and
short-term investments 111,529 89,305
Accounts receivable, net 34,892 17,139
Inventories 3,182 3,686
Prepaid expenses and other current assets 2,495 2,197
Total current assets 152,098 112,327
Property and equipment, net 10,346 4,947
Other assets 5,005 6
Total assets $167,449 $117,280
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $21,683 $10,664
Payroll related liabilities 9,194 4,414
Other accrued liabilities 19,615 9,830
Deferred revenue 8,522 7,688
Current portion of capital lease
obligations 232 478
Total current liabilities 59,246 33,074
Stockholders' equity:
Common stock 121,985 119,651
Deferred stock compensation (2,880) (3,440)
Notes receivable from stockholders (5,181) (5,660)
Accumulated deficit (5,721) (26,345)
Total stockholders' equity 108,203 84,206
Total liabilities and
stockholders' equity $167,449 $117,280
Brocade Communications Systems, Inc.
Statements of Operations
(in thousands, except per share data)
Three Months Ended Six Months Ended
April 29, April 30, April 29, April 30,
2000 1999 2000 1999
(unaudited) (unaudited) (unaudited) (unaudited)
Net revenues $62,053 $10,540 $104,793 $18,547
Cost of revenues 26,053 5,437 46,137 8,758
Gross margin 36,000 5,103 58,656 9,789
Operating expenses:
Research and
development 9,666 2,729 15,694 5,634
Sales and marketing 8,311 2,357 14,558 4,086
General and
administrative 2,080 674 4,116 1,415
Amortization of
deferred stock
compensation 280 220 560 1,377
Total operating
expenses 20,337 5,980 34,928 12,512
Income (loss) from
operations 15,663 (877) 23,728 (2,723)
Interest income, net 1,193 29 2,378 36
Income (loss) before
income taxes 16,856 (848) 26,106 (2,687)
Provision for income
taxes 3,540 -- 5,482 --
Net income (loss) $13,316 $(848) $20,624 $(2,687)
Pro forma diluted
net income (loss)
per share $0.11 $(0.01) $0.17 $(0.03)
Shares used in the
calculation of
pro forma diluted
net income (loss)
per share 120,930 78,544 119,349 76,772
SOURCE: Brocade Communications Systems, Inc. |
