Lightreading wrote an article about Bay Microsystems, an NPU silicon startup that acquired Parama Networks, a SONET/SDH MSPP on a chip company. While I was at Vitesse I would have competed directly with Parama, yet we never saw them and they never seemed to be a real factor in the market.
Hopefully it was just a slow news day, or Scott Raynovich wanted to be kind and write something about a conference he was invited to (I called Needham last week and couldn’t get in :( ). If this was the best thing at the conference then I don’t think I missed much.
What is the news here… a private company presents at an investor conference (note Needham Capital is an investor in Bay, this should have been disclosed) and proposed to build yet another uMSPP. Vitesse (VTSS), Galazar, AMCC (AMCC), and PMC-Sierra (PMCS) have already built similar reference designs, if there was a market for another MSPP player they would have entered it years ago.
Even better, as an MSPP silicon vendor they will be competing with their own customers – unless of course they have no customers.
The only thing that caught my eye was $16MM in revenue for 2005. I’d be extremely curious to know what silicon products generated that. I’m pretty sure it wasn’t the Parama silicon. If I had to guess it was more likely on the government dole. Maybe we can get a copy of Bay’s cash flow statement to go with that figure from the income statement.
Any comments from the incumbent silicon guys? Am I off the mark here?