The layoffs were a surprise, considering PMC had taken most of its lumps much earlier in the downturn. But the overall direction jibes with the plan PMC outlined in 2001 (see PMC-Sierra Pulls Packet Silicon). The major difference is that the company is moving even further than expected from the network core, into enterprise and storage.
"It's not that we're turning away from service providers. We continue to play a dominant role there," Brownridge says.
PMC officials also hinted at products in the 10-Gbit/s transceiver space, the realm of the Xenpak, XPAK, X2, and XFP multiservice agreements (see Is Xenpak Past It? and The X-Wars: Agilent Strikes First). They wouldn't give specifics on their plans, however.
AMCC Digs In
Finally, AMCC has stuck to its guns in telecom and network processing (see AMCC Reports Q3). Company officials continue to hint that they might use acquisitions to diversify which makes sense given AMCC's cash reserves of $1 billion (see AMCC May Go Shopping).
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