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TWST: What kinds of developments do you see taking place in the sector overall in the next couple of years? (Nasdaq:IDTI)

Mr. Côté: At a macro-market level, I think the most dramatic development we will see is a continued convergence of voice and data technology, including convergence in the wireless sector. At an end-customer level, this convergence into a single global network, we think, plays well into the markets that we serve. And as Alan said, we view IP switching and routing, the wireless base stations moving to both voice and data, and the emerging broadband access networks as very strong growth opportunities. Therefore, over the last couple of years, the company has really focused its attention on serving those markets with an increasing number of integrated and value-added products. And, as Alan alluded to, IDT has moved away from a reliance on multi-source memory towards more application-specific standard products that take advantage of the integration of memory, logic and embedded processors, a variety of different technologies that deliver the requirements that customers really need. The combination of what we think is going to continue to be a very diverse and growing market, coupled with our focus on more value-added products represents some of the biggest opportunities for us, and that’s changing the way this company operates.

TWST: Is your biggest opportunity in the broadband market?

Mr. Côté: No, it is actually a combination of sectors. IP switching and routing will continue to be a very, very dominant part of the marketplace. And I would say that broadband is probably our fastest-growing segment from a very small base of about 6% of revenue. We also think the whole area of DSL, whether that’s today’s ADSL or movement to these other technologies, will be a long-term high-growth area. But we believe that it will be balanced with our focus on what’s going to be third-generation wireless systems, overall enterprise switching and routing and broadband. We believe those three major sectors in the communications infrastructure represent good growth opportunities.

TWST: What do you consider your competitive advantages to be?

Mr. Côté: Probably our most significant competitive advantage is our ability to integrate high-performance logic and memory and, increasingly, embedded processors into more application-specific products. In other words, our customers are increasingly looking for higher performance and more integration in their products. Our ability to deliver standard products that integrate these different technologies in the unique ways our customers require is a unique advantage of the company, both in terms of the actual design and development and in terms of our ability to talk to our leading customers. We have a relationship with, I would say, every major communications customer, and we spend a fair amount of time talking to them about their requirements for future architectures and tailoring our products to meet those requirements.