PMC-Sierra, Inc. designs, develops, markets, and supports semiconductor, embedded software, and board level solutions by integrating its mixed-signal, software and systems expertise through a network of offices in North America, Europe, and Asia. The company has approximately 700 different semiconductor devices that are sold to equipment and design manufacturers, who in turn supply their equipment principally to enterprises, Cloud Data Centers and carriers worldwide. The company provides solutions for its customers by leveraging its intellectual property, design expertise and systems knowledge across a range of applications and industry protocols. The company’s portfolio of semiconductor devices is used in various applications of storage and communications network infrastructure equipment. The company’s portfolio of semiconductor devices are used in various applications of communications network infrastructure equipment and enable the transporting and storing of large quantities of digital data in a secure manner. Its semiconductor devices enable networking equipment primarily in three market segments: storage, optical and mobile networks. Storage The company’s storage products are supplied directly to original equipment manufacturers, data center and channel customers. Its products and solutions for the storage market segment enable high-speed communications between the servers, switches and storage devices that comprise these systems thus allowing large quantities of data to be stored, managed and moved securely. The company’s solutions range from chip level offerings to full board solutions and applications software. The company also includes printer application-specific integrated circuits and microprocessors for enterprise networking in this market segment as they are most aligned with its enterprise storage customers. Optical The company’s optical products include its wide area network communication products focused on Metro and access networks, including optical transport networks (OTN), synchronous optical networks (SONET), asynchronous transfer mode and fiber to the home. Carriers are starting to migrate their metro networks from SONET/synchronous digital hierarchy to packet-based networks based on OTN standards. OTN equipment is starting to be deployed in the metro and access portions of the network. Mobile The company’s mobile products include WinPath network processors, T1/E1framers and mappers, and radio frequency integrated circuit devices sold into mobile access markets and include devices that are used in 2G, 3G and 4G wireless base stations and mobile backhaul equipment. The company’s highly integrated network processors are optimized for fiber and microwave backhaul, and cell site aggregation networks. Sales, Marketing, and Distribution The company sells its products to end customers directly and through distributors and independent contract manufacturers’ representatives. In 2014, the company’s major distributor was Avnet Inc. (Avnet), which sold its products into North America, South America, Europe, Africa, and Asia. In 2014, sales shipped through Avnet represented 11% of the company’s total net revenues. The company’s second major distributor in 2014 was Macnica Inc. (Macnica). Sales shipped through Macnica in 2014 represented 10% of the company’s total net revenues. In 2014, the company amended its distributor agreement with Avnet to restrict the distribution territories to Europe, Africa, and Asia. In 2014, the company had two end customers, Hewlett-Packard Company and EMC Corp., which each accounted for approximately 10% of its net revenues. Research and Development For the year ended December 27, 2014, the company’s research and development spending was $198.9 million. Strategy The key elements of the company’s strategy include leveraging its mixed signal, software and systems expertise to be the leading supplier of silicon and embedded software solutions for Storage, Optical, and Mobile networks; delivering best-in-class performance and integration to lead the server and storage system market segments, for both Enterprise and Cloud Data Centers; building on its position as the leading telecom silicon provider to enable the most integrated OTN and passive optical network solutions in the metro and access networks; and enabling mobile broadband via 4G LTE by providing a seamless transition to packet based backhaul with its multi-service network processor platform and integrated Radio solutions to allow its customers to leverage available spectrum. Trademarks PMC, PMC-Sierra and the company’s logo are registered trademarks and service marks. Competition The company competes against established peer-group semiconductor companies that focus on the communications and storage semiconductor business. These companies include the following: Altera Corp., Analog Devices Inc.; Applied Micro Circuits Corp.; Avago Technologies Limited; Broadcom Corp.; Emulex Corp.; Exar Corp.; InPhi Corp.; Intel Corp.; Marvell Technology Group Ltd.; Maxim Integrated Products, Inc.; QLogic Corp.; Texas Instrument Inc; and Xilinx, Inc. History PMC-Sierra, Inc. was founded in 1983. The company was incorporated in the state of California in 1983 and reincorporated in the state of Delaware in 1997.
pmc - sierra inc (PMCS:NASDAQ GS)
1380 Bordeaux Drive
Sunnyvale, CA 94089
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