Fujitsu Softek to Acquire Vixel's SAN Management Software Group.Business/High Tech Editors BOTHELL, Wash.--(BUSINESS WIRE)--April 8, 2002 Vixel to Increase its Focus on the Embedded Inserted into. See embedded system. Storage Switch Market and InSpeed(TM) Technology-based Product Lines. Company Reiterates Financial Guidance for First Quarter Vixel Corporation (Nasdaq:VIXL VIXL Video Cross Links VIXL Video Image Cross Link ), a leading provider of storage networking products and technologies, announced today an agreement under which Fujitsu Softek will acquire Vixel's SAN Management software business for up to $10 million. The agreement includes Vixel's SAN Management software, SAN InSite(TM), associated intellectual property and key development team resources. Vixel has also announced that it is aligning its operations to reduce operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. by approximately 20% in fiscal year 2002 as compared with fiscal year 2001. This alignment will enable Vixel to focus its emphasis upon the Embedded Storage Switch and Rich Media SAN markets. The Company is reiterating its guidance for first quarter 2002 financial results, which it plans to report after the close of regular market trading on April 23, 2002. "We've built a world-class SAN management software product and are delighted that our OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and partner, Fujitsu Softek, has now taken the extra step to acquire it as a key element of their storage software business," said Jim McCluney, president and chief executive officer of Vixel. "Armed with our enhanced cash position and lower operating expenses, we are focusing our development resources on an exciting and new area of the storage market where we have both first mover and competitive advantage. The Fibre Channel market is evolving quickly. We believe we have effectively positioned ourselves to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. an emerging growth area, and the traction we're experiencing in our engagements in the Embedded Storage Switch Market has been very positive. By aligning our operations to support our new business model, we believe we have taken a significant step forward toward our goal of becoming profitable." "Through this acquisition, Fujitsu Softek further demonstrates its commitment to its stated strategy of deploying the first complete vendor-independent, end-to-end storage management software solution, through internal development or acquisition of best-of-breed technologies," said Fujitsu Softek president and chief executive officer Steven F.X. Murphy. "By acquiring the SAN InSite technology with the founding development team, Fujitsu Softek enhances its SAN management development capabilities already recognized in the industry. By adding multi-vendor SAN Network Management, we have secured one of the last foundation building blocks we need to complete our integrated Storage Resource Management vision, and are the first-to-market with such a robust solution." With Fujitsu Softek's acquisition of Vixel's SAN Management software business, Vixel's focus is on the Embedded Storage Switch market, the Rich Media SAN markets, and additional new and emerging market opportunities. The Company's InSpeed technology has spawned a new generation of Vixel product offerings that help OEMs solve performance deterioration problems during scaling and improve system reliability in RAID, NAS (1) See network access server. (2) (Network Attached Storage) A specialized file server that connects to the network. A NAS device contains a slimmed-down operating system and a file system and processes only I/O requests by supporting the popular , Tape and next generation super scalar scalar, quantity or number possessing only sign and magnitude, e.g., the real numbers (see number), in contrast to vectors and tensors; scalars obey the rules of elementary algebra. Many physical quantities have scalar values, e.g. storage systems. Leading storage providers such as Network Appliance (1) A specialized device for use on a network. For example, Web servers, cache servers and file servers can be implemented as general-purpose computers with the appropriate software or as network appliances, which are computers dedicated to a single function and cannot do anything and BlueArc are already embedding 1. (mathematics) embedding - One instance of some mathematical object contained with in another instance, e.g. a group which is a subgroup. 2. (theory) embedding - (domain theory) A complete partial order F in [X -> Y] is an embedding if Vixel technology to improve the performance and reliability of their solution offerings. "Vixel is focusing its efforts on driving revenue growth in the Embedded Storage Switch market by leveraging its relationship with Vitesse Semiconductor and by continuing to build its 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. development team resources to meet the many opportunities associated with InSpeed technology," said Beth White, vice president of marketing for Vixel. "We have already leveraged this unique and disruptive technology A new technology that has a serious impact on the status quo and changes the way people have been dealing with something, perhaps for decades. Music CDs all but wiped out the phonograph industry within a few years, and digital cameras are destined to eliminate the film industry. to create a new, low cost switch product that eliminates the complexities that prohibit SANs from being broadly adopted for entry level applications. In addition, we will continue our aggressive level of fabric switch certifications such as those recently announced with Hitachi and IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , and increase our efforts with industry leaders such as Avid Technologies "Avid" redirects here. For the "Advancement Via Individual Determination" educational program, see AVID. Avid Technology, Inc NASDAQ: AVID is an American company specializing in video and audio production technology; specifically, digital non-linear media editing (NLE) to build our switch business in key traditional SAN markets." In connection with the transaction with Fujitsu Softek, Vixel will receive guaranteed cash payments of $5 million and up to an additional $5 million over the next four years based on the sale by Fujitsu Softek of SAN InSite-based software products. Fujitsu Softek will also provide maintenance support for Vixel's existing SAN InSite customer base and allow Vixel to retain rights to the software to service existing customers. Completion of the transaction is expected to occur before the end of April 2002 and is subject to customary conditions to closing. "Our preliminary financial results for the first quarter ended March 31, 2002 indicate we will be in line with the guidance we provided early in the quarter," said Kurt Adams, chief financial officer of Vixel. "The sale of SAN InSite and the alignment of our resources to focus on the Embedded Storage Switch and Rich Media SAN markets are further proof of our commitment to creating a stronger, leaner Vixel for the long-term. Our worldwide employee base will be approximately 100 after the SAN InSite transaction is completed. With this, we expect our operating expenses in fiscal 2002 to be approximately 20% lower than in fiscal 2001." About Vixel Corporation Vixel Corporation is creating disruptive storage networking technologies that consistently deliver easily managed, easily integrated, high-performance interconnectivity at highly competitive prices. Vixel's InSpeed(TM) technology is a unique switching architecture designed from the ground-up as an effortlessly managed storage interconnect solution. Optimized for the needs and price requirements of storage and server suppliers, InSpeed has been designed to overcome the cost/performance barriers inhibiting broad storage networking adoption. Vixel is an industry leader in providing a new breed of embedded storage switch products that improve data access and availability to business applications -- regardless of scale. Vixel also offers a new generation of high-performance storage switches designed for businesses of all sizes that need affordable and simple Storage Area Networks (SANs). As a leading provider of SAN solutions, Vixel's comprehensive portfolio of technology offerings also includes multivendor certified solutions, Fibre Channel switches Major manufacturers of Fibre Channel switches are: Brocade, Cisco, McData and Qlogic.
(2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001 certified company. For more information, visit Vixel's web site at www.vixel.com. Vixel Corporation is headquartered at 11911 North Creek Parkway South, Bothell, Washington Bothell is a city located in the state of Washington. The population was 30,150 at the time of the 2000 census. Prior to annexation and the 2000 census, the northern portions of Bothell which lie in Snohomish County were considered a part of the Alderwood Manor-Bothell North 98011 and can be contacted by phone at 425/806-5509 or e-mail at marketing@vixel.com. Except for historical information contained herein, this news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risks and uncertainties that may cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that may cause such a difference include risks affecting performance and market acceptance of Vixel's products, Vixel's ability to meet its quality and performance standards, development of the storage area network, or SAN market, the competitiveness and performance of Vixel's products in the rapidly changing SAN market, the ability of Vixel to meet evolving product standards required by customers and others involved in the distribution channel for SAN products, the ability of Vixel to establish additional customers for its InSpeed technology and to further penetrate the Embedded Storage switch and Rich Media markets, the acceptance of embedded switch technology generally, finalization of Vixel's fiscal 2002 first quarter financial results, and the ability of Vixel to meet the closing conditions of the transaction with Fujitsu Softek. Further information on the factors and risks that could affect Vixel's business, financial condition and results of operations, are contained in Vixel's Annual Report 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. , which is available at www.sec.gov. All logos, trademarks and names contained herein are the property of their respective owners. |
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