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To: Stoctrash who wrote (34729)	7/27/1998 5:03:00 PM
From: John Rieman	Respond to of 50808

Videophones................................ eet.com Our platform will help cable-modem vendors and cable operators establish a proof-of-concept for Internet videophone technology. It will help them develop solutions to sell to the market, and hopefully, they'll tell us what it is they want," the spokesman said. 8x8's VCP architecture supports all of the relevant ITU standards for Internet telephony. Those include H.261 and H.263 video codecs; G.711, G.723, G.728 and G.729 audio codecs; the Q931 call-signaling protocol, RAS gatekeeper signaling protocol and H.245 call control protocol; echo cancellation, and a complete TCP/IP stack. Noting that the cable industry is still in the definition stage for IP-based telephony, the 8x8 spokesman said his company's road map will remain flexible. Beyond selling its VCP processors to cable-modem vendors, 8x8 may leverage the architecture to develop its own cable modem with an IP videophone built-in, he said. The company could also build IP packet gateway systems for the home if it perceives demand for such an offering. The IP packet gateway would interface to broadband networks such as cable and ADSL. Today, 8x8's revenue is evenly split between its videotelephony systems business and its chip business. Revenue for fiscal 1998, which ended in March, came in at $49 million, compared with $19 million in fiscal 1997. There are many silicon vendors that make MPEG encoder/decoder chips today. But 8x8 is among a very few that have tailored programmable silicon for ITU standards-based video communications. 8x8 further claims to be among an elite in having found success in consumer videotelephony. Most of the companies that have built successful businesses in videotelephony, such as PictureTel, have focused on large videoconferencing systems for professional markets.