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This excerpt taken from the NETL DEFA14A filed Jun 2, 2009. Adam Benjamin - Jefferies & Co. - Analyst Got you. And then just one last question on the comm side; you guys have been working together for some time, you announced some partnerships or reference designs together. In terms of how we should be thinking about this business going forward and integrating it together and the timing of seeing the true benefits of selling both products together to your top 20 comm equipment OEMs, how should we do thinking about that, Ron?
Ron Jankov - NetLogic Microsystems - President, CEO Well, I think the synergies will be dramatic and immediate. I think RMI its customers have become very conservative in this economic environment, and theyre very hesitant to commit these five to seven-year programs to a private company. So I think RMI has a large architectural advantage. They clearly have the performance leadership on the high end of the market and the power leadership in the power sensitive part of the market. So what has been holding them back the last 12 months really is being a private company. I think the very fact that we are together is going to give a huge immediate boost to their sales force and to our sales force selling their products. So I think there will be a very quick impact in terms of design wins and securing additional business. I think the other area where there is going to be a very quick result is operational efficiencies. Our two operations teams have been working together, and we have found lots of areas where we can very significantly reduce cost both by bringing some of their techniques into NetLogic and especially taking some of the NetLogic high-volume techniques into RMI. So we see great synergies on the manufacturing and cost side. So there will be some very quick benefits upon closing.
© 2009 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Thomson Financial.
FINAL TRANSCRIPT
Operator Sandy Harrison, Signal Hill.
This excerpt taken from the NETL 8-K filed Jun 2, 2009. Adam Benjamin - Jefferies & Co. - Analyst Got you. And then just one last question on the comm side; you guys have been working together for some time, you announced some partnerships or reference designs together. In terms of how we should be thinking about this business going forward and integrating it together and the timing of seeing the true benefits of selling both products together to your top 20 comm equipment OEMs, how should we do thinking about that, Ron?
Ron Jankov - NetLogic Microsystems - President, CEO Well, I think the synergies will be dramatic and immediate. I think RMI its customers have become very conservative in this economic environment, and theyre very hesitant to commit these five to seven-year programs to a private company. So I think RMI has a large architectural advantage. They clearly have the performance leadership on the high end of the market and the power leadership in the power sensitive part of the market. So what has been holding them back the last 12 months really is being a private company. I think the very fact that we are together is going to give a huge immediate boost to their sales force and to our sales force selling their products. So I think there will be a very quick impact in terms of design wins and securing additional business. I think the other area where there is going to be a very quick result is operational efficiencies. Our two operations teams have been working together, and we have found lots of areas where we can very significantly reduce cost both by bringing some of their techniques into NetLogic and especially taking some of the NetLogic high-volume techniques into RMI. So we see great synergies on the manufacturing and cost side. So there will be some very quick benefits upon closing.
© 2009 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Thomson Financial.
FINAL TRANSCRIPT
Operator Sandy Harrison, Signal Hill.
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