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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Diamond Jim who wrote (6393)	2/22/1999 10:39:00 AM
From: ALTERN8	Read Replies (1) \| Respond to of 21876

Monday February 22, 10:16 am Eastern Time Company Press Release Lucent Technologies Acquires Sybarus Technologies Combined Team Creates Design Center for Broadband Network Systems-On-A-Chip ALLENTOWN, Pa.--(BUSINESS WIRE)--Feb. 22. 1999--Lucent Technologies' Microelectronics Group, the world's leading communications semiconductor business, today announced it has acquired Sybarus Technologies, a privately held semiconductor design company based in Ottawa, Canada. Purchase terms were not disclosed. As part of the arrangement, Lucent's Microelectronics Group gains integrated circuit (IC) technology for high-speed data and telecommunications transmission systems known as Synchronous Optical Network (SONET) and Synchronous Digital Hierarchy (SDH) systems. It also gains the Sybarus team of some 35 skilled engineers with extensive SONET/SDH design expertise. The move strengthens Lucent's leadership in SONET/SDH networking components and positions the company to deliver broadband transport systems-on-a-chip to manufacturers of network communications systems worldwide. ''The skyrocketing demand for capacity caused by global network expansion and the popularity of the Internet is driving spectacular growth in the broadband transport system market,'' said Ed Roberts, general manager of the broadband IC business at Lucent's Microelectronics Group. ''Our newly combined design teams are equipped to meet the needs of this market, bringing more SONET and SDH component design experience to the networking industry than any other semiconductor company. No other company will be better positioned to build the complete data path for broadband networks.'' The worldwide optical transmission system market was US$11.7 billion in 1997. Dataquest, a market research firm, projects its growth at 20% over the next four years, reaching close to US$14 billion in 2001. Lucent's Microelectronics Group offers this market a broad portfolio of system-level SONET/SDH semiconductors, including standard product ICs, application- specific integrated circuit (ASIC) macrocells, and optoelectronic components that transmit and receive light pulses over fiber- optic networks. While Sybarus' designers will join Lucent's broadband and high speed switching component business, they will remain in Ottawa as part of a new Lucent broadband transport center of excellence. The center will be headed by Sybarus' chief executive officer, Richard DeBoer. He will report to Roberts. ''The Ottawa center of excellence will specialize in SONET/SDH system-on-a-chip design that will enable the creation of next-generation networks,'' said DeBoer. ''The center will also provide select customer support and will represent Lucent before various standards committees.'' ''Ottawa is known as Silicon Valley North,'' said Jim Schram, president and CEO of Lucent Technologies Canada. ''In just the past few years, it has gained considerable stature throughout North America as a hotbed for technological development. Now, by joining forces with Sybarus, Lucent is contributing to the vitality of this region. It is a great location for Lucent's Microelectronics Group to serve its global customer base of communications systems manufacturers.'' The acquisition builds upon Lucent's existing relationship with Sybarus. According to Roberts, Sybarus played a key design role in Lucent's recent development of the DETROIT chip announced late last year. This device is claimed to be the industry's first to support the emerging simplified data link (SDL) transmission system. It provides direct data-over-fiber and multiple protocol and data rate operation up to OC-48 which can dramatically reduce system development time and costs of high-speed switch and router systems. ''Not only will Sybarus play a critical role in accelerating the capability of next-generation network speeds, but also in combining the DETROIT multiple protocol technology with that of traditional SONET/SDH transmission equipment,'' said Roberts. The purchase is expected to result in a one-time charge against earnings. The charge involves an accounting write off assigned to in-process research and development and will be taken in the quarter ending March 31, 1999. Excluding the one-time charge, the impact of the purchase to earnings is expected to be immaterial. Sybarus Technologies is a privately-held company that provides integrated circuit, software and systems design services for advanced high-capacity voice and data communications systems. It was incorporated a little more than one year ago and is one of Ottawa's fastest growing technology companies. The company employs some 35 engineers with experience in communications technologies used by network service providers worldwide, most notably synchronous optical transport (SONET) and synchronous digital hierarchy (SDH). It is curently doing design work for next-generation systems that will transport signals at 10 billion bits-per-second (Gb/s) - four times the information-carrying capacity as today's leading systems, or enough capacity to transport the word content of 10,000 novels every second. Lucent Technologies designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronics components. Bell Laboratories is the research and development arm for the company. For more information on Lucent Technologies, headquartered in Murray Hill, N.J., USA, visit its web site at lucent.com. Lucent's Microelectronics Group designs and manufactures integrated circuits and optoelectronic components for the computer and communications industries. More information about the Microelectronics Group is available from its web site at lucent.com. --------------------------------------------------------------------------------