During the last quarter we undertook an internal initiative intended to focus our sales marketing and support under a unified and dedicated umbrella of the Chips and Modules Business Unit (CMBU). All APAC sales activity was transferred to Rudy Shainer, who will later lead all the CMBU sales activity. In Israel we took a new distributor for chips and modules, Amtronics from the STG group. Amtronics sells (among its other products) Legerity SLICS and Codecs, and our DSPs complement their offering for VoIP solutions. They have a strong sales and support team as well as street presence, and are well equipped to face the tough challenge of boosting our sales in Israel.

In the Professional Services group we are pleased to welcome a new engineer, Ariel Almog, who will help us beef-up support for our fast growing customer base of the AC494 System on Chip. We also bought the IP Phone toolkit (including SIP and H.323 stacks for VxWorks and Embedded Linux) from RADVISION, to be integrated to the AC494 platform. This will help us support another IP Phone and CPE market segment of customers who are not experienced with VoIP software and are looking for a more complete solution.

Another important activity in this quarter was enhancing the relationship with our DSP supplier, Texas Instruments. We have been working closely with them to explore the possibility of sharing technical resources as well as sales opportunities. As TI is mainly focusing on a limited number of tier one customers, a new opportunity opens for us to get new customers. Also TI will help us promote our solution to customers in joint marketing activities and with unique solutions that do not appear in their portfolio.