Mr. Krock: The company is focused in several high-growth, communications-oriented markets. The largest portion of our sales, 46%, is derived from the network infrastructure market. The largest customer within this segment is Cisco Systems. After that, 20% of our sales originates from wireless base stations. We do not have any handset exposure. In addition, 7% of sales is generated by network access. Outside of the pure communications network, IDT also serves storage area network markets, which account for about eight percent of total sales. These are the largest sectors of the markets that we address. Over the past few years, the company has narrowed its focus to address the communications infrastructure markets. Currently, IDT is participating in markets where it can be a leader, or has an opportunity to become a leader over time. This focus reflects a different philosophy than people would have previously associated with IDT several years ago when it was primarily focused in the multi-source memory and x86 markets. The x86 portion of the business was sold to VIA Technologies of Taiwan and the SRAM portion of the company has been dramatically narrowed in scope. These changes have allowed IDT to focus on the communications infrastructure markets.
TWST: Will your source of revenue continue to be in IP routing in the
communications sector?
Mr. Krock: Yes, that's going to be the largest share, although
certainly, wireless base stations and storage area networks are
generating a lot of hardware sales, and IDT's components play important
roles in the leader systems there.
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