Bay Microsystems picks up Parama Networks, achieves profitability
June 1, 2005 Santa Clara, CA -- Bay Microsystems, a provider of programmable packet processors, software, and network elements for broadband networks, today announced that it has achieved profitability, as well as what it calls record revenue growth.
The company also announced its first acquisition, entering a definitive agreement to buy Parama Networks, a fabless semiconductor company specializing in system-on-a-chip platforms for telecommunications transport equipment. The merger is expected to close later this month; terms were not disclosed.
As part of its strategy to complete the acquisition of Parama, Bay also announced that it has raised additional capital from new and existing investors, securing a Series D round of $8.4 million. The company says it is actively partnering with the US federal government and with commercial OEMs to enable the growth of broadband networks.
"Achievement of profitability is a major milestone in the growth of our company. With the acquisition of Parama Networks, we are continuing this growth," remarks Chuck Gershman, president and CEO of Bay Microsystems. "Parama's products and technology synergistically enhance our Intellectual Property and product portfolio, with the addition of the highest level of integration in switching and framing technologies in the industry."
"With our mutual emphasis on extreme levels of integration, state-of-the-industry performance, and ultra-high channelization, the merger of Bay and Parama will meet our customers' demands for cost-sensitive, compact, innovative, and scalable network element solutions," adds Hemant Bheda, president and CEO of Parama Networks.
Bay will support Parama's line of "ADM-on-a-Chip" devices, and says it has already begun supporting existing customer designs.
Bay says its Internetworking Processor product family is designed to mediate, aggregate, switch, and transport voice, video, and data traffic across network domains including LANs, SANs, and WANs. The products feature the company's protocol agile processing technology, which the company says enables simultaneous, maximum line rate operation for interworking and mediation of IPv4, IPv6, Ethernet, GFP, SONET, Fiber Channel, ATM, Frame Relay, and other protocols.