Mr. McMullan: GlobeSpan designs chip sets for digital subscriber line (DSL) applications, which enable the high-speed transmission of data, voice, and video over existing copper phone wires. Our core team of engineers pioneered DSL technology at AT&T Bell Labs in 1987, introducing the first DSL integrated circuit in 1991. Recognizing the challenges of field deployment and having the system level knowledge, this same team introduced the first fully reprogrammable DSL integrated circuit in 1994. We continued to advance these early designs, and have been able to create the broadest suite of standards-based DSL products using this reprogrammable platform. In 1996 the DSL business unit was purchased from AT&T Bell Labs in the trivestiture of AT&T and Lucent, and GlobeSpan became an independent company. At that time, our primary shareholder was the Texas Pacific Group. In May 1999, we added our customers Cisco and Intel as investors, and in June 1999 GlobeSpan became a public company, completing our IPO at a split-adjusted price of $5 a share. In every quarter since becoming a public company we have delivered results that have bettered analyst estimates. For our latest quarter ending September 30, 2000, we delivered $110.4 million in revenues, representing sequential growth of about 46% and pro forma EPS of 18 cents a share.
TWST: Is your semiconductor product exclusively for use with DSL?
Mr. McMullan: It is today. Currently our chip set comprises silicon, as
well as software. And since we feature a reprogrammable platform, the
software is just as critical. GlobeSpan has created a system-level
solution for DSL equipment manufacturers. In terms of overall market
share, we believe we are the DSL market leaders. We are the most
diverse, by way of the broadest standards-based product portfolio, which
means that we address all flavors of DSL. We also consider ourselves to
be the largest DSL chipset supplier in terms of overall size, not only
in revenues ' we just finished our recent quarter where we generated
$110 million ' but also in terms of personnel. Today we have more than
700 people of whom almost 600 are engineers involved in product
development and support.
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