Bay Networks Acquires NetICs Inc.; Acquisition Expands High Performance Ethernet Switching At Price/Performance Breakthrough.SANTA CLARA Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif.--(BUSINESS WIRE)--Dec. 18, 1996--Bay Networks, Inc. (NYSE NYSE See: New York Stock Exchange : BAY) today announced that it has acquired NetICs Inc., a privately held company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. developing high-performance, autosensing Fast Ethernet An earlier name for 100Mbps Ethernet. See 100Base-T. (networking) Fast Ethernet - A version of Ethernet developed in the 1990s(?) which can carry 100 Mbps compared with standard Ethernet's 10 Mbps. It requires upgraded network cards and hubs. switches based on innovative ASIC (Application Specific Integrated Circuit) Pronounced "a-sick." A chip that is custom designed for a specific application rather than a general-purpose chip such as a microprocessor. technology. NetICs' technology will be used for 10/100 Ethernet switches and will provide next generation ASIC technology for other Bay products. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. market research firm, International Data Corporation, August 1996, the switched 100BASE-T market is expected to grow from over $700 million in 1997 to over $2.5 billion in 2000. Bay Networks is the leader in the switched 100BASE-T market (Dataquest, Nov. 1996). The first switch based on the NetICs acquisition will offer autosensing 10/100 Mbps Ethernet targeting an aggressive sub-$250 price per port. The switch is scheduled for release in the first quarter of 1997. "The acquisition of NetICs adds to Bay Networks technology portfolio and complements our switch solutions," said Dave House Dave House is a singer/songwriter from South East England. He first started performing as a solo artist in 2003 after the break up of his old band Lucky Thirteen. Despite other band projects his solo performances remain some of the most successful work he's done. , president, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and chairman of Bay Networks. "It will also enable us to extend our leadership position and take further advantage of opportunities in the fast growing 10/100 Ethernet switch market." Key to the new technology is the ability to future-proof 10/100Mbps switches with auto-negotiation port technology and autosense full-duplex/half-duplex transmission detection. The result of which is that customers can evolve from segment switching, to 10Mbps switching, to 100Mbps switching without replacing the switch. By changing the speed of their network interface cards, they automatically upgrade their end-to-end network speed -- thus reducing the administrative burden as well. In addition, this technology supports a rich feature set and wire speed 100Mbit performance. NetICs will continue to work as an independent operating group, within Bay Networks' Enterprise Business Unit, focusing on its mission to develop cost breakthrough network infrastructure solutions that connect Ethernets at any speed, including 10 Mbps, 100 Mbps and Gigabit Ethernet An Ethernet standard that transmits at 1 Gbps. Used mostly to connect high-end workstations and servers as well as for network backbones, Gigabit Ethernet transmits full duplex from point to point using switches and half duplex in a shared environment (CSMA/CD) using a hub. . Terms of the agreement enable NetICs to maintain its "startup" atmosphere, but leverage the global market strength of Bay Networks. Gary Vacon, founder and president of NetICs, will become vice president reporting to Dick Eyestone, senior vice president of Bay Networks' Enterprise Business Unit. "We see Bay Networks as a company that is well positioned in the Fast Ethernet switch market and we are excited to be an integral part of this team," said Gary Vacon, founder and president of NetICs. "By combining NetICs technology and Bay Networks expertise we can bring true adaptive 10/100 capabilities to the market at breakthrough market pricing," said Dick Eyestone, senior vice president for Bay Networks' Enterprise Business Unit. "This is a market first," he added. The acquisition will be accounted for as a purchase with Bay Networks exchanging a combination of $55 million worth of Bay Networks stock and cash of up to $44 million for all the outstanding stock of NetICs. Consistent with standard accounting practice for technology- related acquisitions, Bay Networks expects to recognize a substantial portion of the acquisition price as a one-time charge for In-Process Technology. This charge will be taken in the quarter ending December 31, 1996. About Bay Networks Bay Networks, Inc. is a worldwide leader in the internetworking market, providing a full line of products that serve enterprises, workgroups, small offices and mobile workers. The company offers LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. and ATM switches, hubs, routers, remote and Internet access See how to access the Internet. solutions, and network management applications, all unified by the BaySIS architecture. With revenue of $2.1 billion over the past fiscal year, Bay Networks markets and supports its products around the world, providing 7x24 support coverage. Bay Networks' World Wide Web address is: http://www.baynetworks.com . About NetICs NetICs was formed in 1995 with the mission of building easy to use network infrastructure products that improve network performance without increasing network costs. The NetICs team is skilled in solving network problems with innovative architectures and ASIC technology. Focused on low cost, high performance, and time to market, NetICs has developed leading Fast Ethernet Technology. This release, other than historical financial information, may consist of forward-looking statements that involve risks and uncertainties. These statements may differ in a material way from actual future events. For instance, factors which could cause results to differ from future events include rapid rates of technological change and intense competition, among others. Readers are also referred to the documents filed by Bay Networks with the S.E.C., specifically the last reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and 10-Q which identify important risk factors for the company. -0- Note to Editors: All Bay Networks press releases are available on Bay Networks' web site at http://www.baynetworks.com or via CompuServe using GO BAYNET. Bay Networks' web site also provides information on the company's products and services, news and events, partner programs, and corporate contacts. Bay Networks is a registered trademark and BaySIS is a trademark of Bay Networks, Inc. Other brand and product names are registered trademarks or trademarks of their respective holders. CONTACT: Bay Networks Investor Relations Investor relations The process by which the corporation communicates with its investors. Linda Fellows, 408/495-1964 lfellows@baynetworks.com or Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Beth Pampaloni, 408/495-2904 Kellie DiNaro, 408/495-3037 kdinaro@baynetworks.com |
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