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Intel sells media and signaling biz

Posted: 11 Aug 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Intel? Eicon? Marvell Technology? XX? XX?

Media processing hardware/software vendor Eicon Networks Corp. has agreed to buy the assets of Intel Corp.'s media and signaling business for an undisclosed amount, Intel said.

The sale, part of Intel's ongoing restructuring effort in the wake of several consecutive quarters of sluggish earnings, is expected to close in approximately four to six weeks, the company said.

In June, Intel sold its communications and application processor units to Marvell Technology for $600 million. The company is also rumored to be selling off several of its communications chip businesses.

The media and signaling business includes all of the product lines from Intel's Dialogic unit, which has been rumored to be for sale for some time. In June, a potential buyer reportedly backed out of a deal to acquire the unit.

The acquisition also includes Intel's Host Media Processing (HMP) software and HMP-enabled blades as well as the company's line of SS7, PBX integration and gateway solutions.

Intel said the media and signaling business includes approximately 600 employees. A "significant number" of these employees will presumably become employees of Eicon. The companies said they would work together to transition the business in order to continue supporting customers.

"Eicon's and Intel's media and signaling products complement each other well," said Nick Jensen, Eicon president and CEO. "We expect this acquisition to extend our global reach with solutions for both traditional circuit switch communication technology and leading-edge IP platforms for both enterprises and service providers."

The company said the sale of the media and signaling business would enable the company to focus its investments on its core communications and embedded businesses. "Intel is sharpening its focus on communications and embedded market segments that are aligned with our core businesses," said Anthony Neal-Graves, general manager of Intel's modular communications platform division.

Intel said the sale would not impact its communications infrastructure products for telecommunications equipment manufacturers, including its Advanced Telecom Computing Architecture blades and carrier-grade rack mount servers, as well as its CompactPCI compute blades and chassis.

Last month, Intel eliminated 1,000 managerial jobs. The company later lowered its 2006 forecast after posting sales and earnings for Q2 that declined both sequentially and from the year-ago quarter. Intel subsequently announced reorganization and is expected to announce additional layoffs when it provides an update of its restructuring initiative later this quarter.

- Dylan McGrath
EE Times

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