some interesting news today
NEC and Magellan Announce Strategic Partnership
PR Newswire - April 14, 1999 08:17
SANTA CLARA, Calif., April 14 /PRNewswire/ -- Magellan Corp., a subsidiary of Orbital Sciences Corporation (NYSE: ORB), and NEC Corporation (Nasdaq: NIPNY) have announced the formation of a strategic partnership to develop Global Positioning System (GPS) semiconductor and system products for high-volume, low-cost consumer market applications. Terms of the agreement were not disclosed, but a product announcement is expected later in 1999.
A prime objective of the partners is development of a GPS intellectual property (IP) core and firmware for use in logic-based System-On-a-Chip (SOC) devices. A single-chip system incorporating the GPS core is expected to be a highly attractive solution for use in consumer electronic devices, with the main immediate application expected to be in car navigation systems where total worldwide sales of 2.4 million units are expected this year and 4.95 million units in 2002.
Other applications such as personal digital communicators (PDC) and personal digital assistants (PDA) incorporating a GPS function are expected to develop new markets quickly for SOCs utilizing the GPS core. NEC anticipates 5% of PDCs and PDAs will mount a GPS function in the year 2000, creating a worldwide market with potential sales of 4.2 billion Yen (approximately US$35 million), quickly rising to GPS penetration into 15% of all PDCs and PDAs by 2002, for a potential market value of 18.5 billion Yen (approximately US$154.2 million).
"Magellan is pleased to be allied with NEC Corporation -- a world leader in the design and manufacture of semiconductor products. As a major semiconductor designer and fabricator, NEC can help put Magellan 'on board' a variety of products and tap markets that we would not be able to reach on our own. This strategic partnership is another significant step in our continuing efforts to license Magellan's core technology capabilities in satellite-based positioning, navigation, timing and communications," said Magellan President and CEO John Huyett.
NEC's Semiconductor Solution Engineering Division Chief Manager Yoshiyuki Idogawa explained, "We are on the verge of an explosive growth in demand for GPS functionality in consumer electronic devices. Already we can see the rapid growth of demand for car navigation systems, but the potential goes much wider. The synergy of Magellan's core technology and our advanced System-On-a-Chip capabilities now gives NEC the ability to expand its highly optimized, integrated solutions to a broad spectrum of customers in commercial, consumer and industrial markets worldwide."
About NEC Corporation
NEC Corporation (Nasdaq: NIPNY) (FTSE: 6701q.l) pioneered the concept of C&C, the integration of Computers and Communications, and is the only company in the world to be counted among top ranking corporations spanning the wide range of fields essential for this vision of multimedia: computers, communications and electron devices. Employing 150,000 people around the world, NEC saw net sales in fiscal year 1997-98 amount to 4,901 billion Yen (approximately US$40 billion). For further information visit the NEC home page at nec-global.com.
About Magellan Corporation
Magellan Corp. designs, manufactures and markets satellite access technology products for worldwide positioning, navigation, communication and timing. Currently the company employs over 500 people and has revenues in excess of $100 million from commercial, industrial, governmental, scientific and consumer markets worldwide. The company is organized into strategic business units including Professional Products for Surveying and Mapping, Precision Products for OEM and Navigation, Consumer GPS Products, Driver Information Systems, Wireless Communications and Technology Licensing. Headquartered in Santa Clara, CA, Magellan also has product development centers in San Dimas, CA, and Rochester Hills, MI; and a technology research and development center in Moscow, Russia.
For more information about Magellan Corporation, visit the company's website at magellangps.com.
SOURCE Magellan Corp.
/CONTACT: Jim White of Magellan Corp., 909-394-5007, or fax,
909-394-7050, jwhite@mgln.com; or Aston Bridgman of NEC Corporation,
+81-3-3798-6511, or fax, +81-3-3457-7249,
Aston_Bridgman@HO-PRD.ccgw.nec.co.jp/
/Web site: nec-global.com |
