This quarter has been another exciting one for the Voice over Packet (Chip) Processors and Modules business line. Chip sales have been increasing by an annual rate of approximately forty percent, aiming to cross the ten million mark for the first time in three years. Boosted by the recent market upturn with ACL traditional chips such as the AC481, AC483 and AC488, Chip sales have also been positively affected by the products that were introduced during the last 1 and a half to two years ago, such as the AC486 and AC482.

As the time to money in the chip business is obviously long, we are mainly concerned in winning valuable designs. Our AC490 with 8 or 12 LBR channel support is leading the new design list in the DSP market, with significant design wins in Tier one and two customers both in Europe and the Far East . Looking forward there is no doubt that our AC494 System on a Chip (SoC) device is a breakthrough in our offering. We see a huge market demand and success with this chip. On top of an AC49x DSP the following are also incorporated: a MIPS RISC CPU, a 3-port Switch, 2 internal phys, 2 internal codecs, keypad, LCD, USB i/f and more. On this IP Phone/CPE device platform we will offer a complete reference design both in hardware and in software. VxWorks and Embedded Linux are the operating systems that will be used in our software reference design, and we are taking the first steps in this challenging task. Our target is to enable customers to develop their application on our chip. Although we currently are still at the stage of a very basic software offering, we already have over ten design wins, some of which are very promising…

Finally, TrunkPack® modules are gearing up in Israel while new activity is concentrated mainly in China. Several major OEMs are ramping up with the TPM-1100 for their trunking GW application, while also seriously looking at our TPM-6300 for their next generation products.