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AppliedMicro Ships 1 Million 10G OTN Ports


07 March 2011

Corporate Contact: AppliedMicro Tally Kaplan Porat (o) 408.702.3139 (c) 408.483.8370 Media Contact: The Bernard Group Tom Murphy (o) 831-661-0260 (c) 831-402-4142

AppliedMicro Ships 1 Million 10G OTN Ports

Deployments rising as service providers seek to expand capacity to meet exploding demand

SUNNYVALE, Calif. – March 7, 2011 – Applied Micro Circuits Corp., or AppliedMicro (Nasdaq: AMCC), today announced that it has shipped 1 million 10G Optical Transport Network (OTN) ports to system providers, who face growing demand to rapidly expand the capacity of metro and core transport networks.

“OTN market adoption has reached a critical tipping point since it was first proposed a decade ago as a replacement for SONET/SDH technology in long-haul networks,” said Francesco Caggioni, Senior Director of Strategic Marketing for AppliedMicro. “We see the trend accelerating as all of our Tier-1 customers anticipate further OTN deployments to transport the exploding volume of Internet traffic over cost-effective, high-speed optical networks. We’ve seen our market share increase as carriers and network system manufacturers transform the Internet infrastructure to accommodate the ever-growing demand for datacenter, enterprise, video and mobile traffic.”

Recent market research shows that carrier OTN deployments are on the rise due to the demand for higher capacity and lower costs. Shipments of AppliedMicro System-on-Chip  ports to manufacturers of optical switch and routing equipment has risen by more than 50 percent over the last two years.

“A recent Infonetics survey indicates that a large percentage of service providers are using OTN on their routers and they intend to increase deployments over the next three years,” said Andrew Schmitt, Directing Analyst, Optical for Infonetics Research. “AppliedMicro strengthened its commitment to OTN with its recent acquisition of TPACK, and can benefit from the transition away from SONET/SDH technology towards OTN, a transition which is accelerated by upcoming 40G and 100G deployments.”

AppliedMicro is one of the early pioneers of OTN and first started shipping ports for this market in 2004 with its Rubicon family of products. Since then, AppliedMicro’s Yahara, Pemaquid, PQx and the recently introduced 100Gbps OTN transponder and muxponder solutions  have provided Tier-1 customers with increased levels of integration for the continued expansion of network capacity and switching speeds.

Following the market success of 10G OTN products such as Rubicon, Yahara, and Pemaquid, AppliedMicro is continuing its market leadership with the world’s most advanced 6x10G solution, the PQ60 family. In addition, multiple Tier 1 customers have chosen the industry’s first family of 100 Gigabit per second (100G) optical network processors for the emerging 100G transport market. AppliedMicro’s 100G OTN products provide the industry’s earliest availability for transponder, muxponder, and cross-connect applications. The company anticipates continued strong growth in its shipments of OTN ports with these highly integrated and flexible offerings.

AppliedMicro Overview
AppliedMicro is a global leader in energy conscious computing solutions for telco, enterprise, data center, consumer and SMB applications. With a 30-year heritage as an innovator in high-speed connectivity and high performance embedded processing, AppliedMicro employs patented transport and embedded processor SoCs to provide high performance energy efficient products. AppliedMicro's corporate headquarters are located in Sunnyvale, California. Sales and engineering offices are located throughout the world. For further information regarding AppliedMicro, visit the company’s Web site at Applied Micro Circuits Corporation.  All Rights Reserved.  AMCC, AppliedMicro, the AppliedMicro logo and TPACK are trademarks or registered trademarks of Applied Micro Circuits Corporation or its subsidiaries.  All other product or service names are the property of their respective owner.

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