Zarlink Semiconductor Inc.
TSX : ZL
OTC Bulletin Board : ZARLF

Zarlink Semiconductor Inc.

October 05, 2010 09:16 ET

NEC Chooses Zarlink Synchronous Ethernet Technology for Microwave Backhaul Equipment

OTTAWA, CANADA--(Marketwire - Oct. 5, 2010) - Zarlink Semiconductor (TSX:ZL) today announced that its synchronous Ethernet network timing products are being deployed by NEC in its PASOLINK microwave communications systems for wireless backhaul. Headquartered in Japan, NEC provides network solutions to communications service providers, business enterprises and government.

"There is very strong demand for our network timing products, as carriers deploy new wireless network equipment or upgrade existing infrastructure to help ensure service quality and lower operating costs created by higher bandwidth mobile broadband applications," said Kirk Mandy, President and CEO, Zarlink Semiconductor. "Leading manufacturers, including NEC, rely on our network timing expertise in a wide range of backhaul equipment now being deployed to enable existing and new communication services over lower cost packet networks." 

According to Infonetics Research, the mobile backhaul equipment market is expected to grow from $7.2 billion in 2009 to $10.4 billion in 2014. Microwave backhaul is the dominant mobile backhaul method, representing over 80 percent of the market. NEC is a leader in the microwave backhaul market, with its PASOLINK system installed in approximately 150 countries worldwide. 

"The world's largest carriers are using our PASOLINK systems to help improve wireless communication services and lower operating costs," said Katsuhiro Sasaki, General Manager, Mobile Wireless Network Division, NEC. "Zarlink's synchronous Ethernet products solve critical network timing issues, and are key technology for NEC as we deliver microwave backhaul solutions that help carriers offer consumers existing and new communication services over packet networks."

As consumer and enterprise users increasingly rely on smartphones and mobile Internet devices to access and share content, carriers are strategically investing in wireless backhaul methods to transport high-bandwidth traffic from wireless base stations to the network backbone over more efficient and cost-effective packet networks. While traditional circuit-switched networks are architected to provide synchronization, packet networks must incorporate next-generation timing techniques, such as Zarlink's Synchronous Ethernet and IEEE 1588 Timing over Packet (ToP) products, to ensure network synchronization and service reliability. 

For more on Zarlink's timing and synchronization expertise, visit: http://www.zarlink.com/zarlink/hs/Timing.htm

About Zarlink Semiconductor

Zarlink Semiconductor delivers world-leading, mixed-signal chip technologies for a broad range of communication and medical applications. The company's core capabilities include network timing solutions that manage time-sensitive communication applications over wireless and wired networks, line circuits supporting high-quality voice services over cable and broadband connections, and ultra low-power radios enabling new wireless medical devices and therapies. Serving the world's largest original equipment manufacturers, Zarlink's highly integrated chip solutions help customers simplify design, lower costs and reach market quickly. For more information, visit www.zarlink.com.

Shareholders and other individuals wishing to receive, free of charge, copies of the reports filed with the U.S. Securities and Exchange Commission and Canadian Securities Regulatory Authorities, should visit the Company's web site at www.zarlink.com or contact Investor Relations.

Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and assumptions include, among others, the following: our dependence on the successful development and market introduction of new products; our ability to integrate any business, technologies, product lines or services that we have or will acquire; our dependence on revenue generation from our legacy products in order to fund development of our new products; current market conditions, including the lack of liquidity in the markets and economic slowdown, may increase our operating costs or reduce our revenue, thereby negatively impacting our operating results; our ability to operate profitably and generate positive cash flows in the future; the impact of the current economic crisis on our suppliers and customers and our ability to transfer parts to other suppliers; our dependence on our foundry suppliers and third-party subcontractors; order cancellations and deferrals by our customers; our substantial indebtedness could adversely affect our financial position; the cost and accounting implications of compliance with new accounting standards; and other factors referenced in our Annual Report on Form 20-F. Investors are encouraged to consider the risks detailed in this filing.

Zarlink and the Zarlink Semiconductor logo are trademarks of Zarlink Semiconductor Inc.

Contact Information