's Customers Performance

Our sales and marketing strategy is to have our products designed into our customers’ equipment by developing superior products for which we provide best-in-class service and technical support. Our marketing team is focused on developing new products and solutions that meet the needs of our customers, including OEMs and original design manufacturers. We are often involved in the early stages of design concerning our customers’ plans for new equipment. This helps us determine if our existing products can be used in their new equipment or if new devices or software need to be developed for the application. To assist us in our planning process, we are in regular contact with our key customers to discuss industry trends, emerging standards and ways in which we can assist in their new product requirements.

Our sales team is focused on selling and supporting our chips and chipsets for equipment providers who are in turn selling their products to service providers, enterprises, or consumers. To better match our available sales resources to market opportunities, we also focus our sales and support efforts on targeted customers.

We sell our products to end customers directly and through distributors and independent contract manufacturers’ representatives. Approximately 25% of our orders were shipped through distributors, approximately 47% were shipped by us directly to contract manufacturers selected by OEMs, and the balance was shipped directly to our OEM customers.
Our largest distributor was Macnica Inc. which sold our products into Japan and Taiwan. Sales shipped through Macnica represented 10% of our total net revenues. Our second largest distributor is Avnet Inc. Sales shipped through Avnet represented 9% of our total net revenues.
We had two end customers, Hewlett-Packard Company and EMC Corp., which each accounted for more than 10% of our net revenues.