Acquisition Enables Oak to Make Its First Direct Offering to Consumers
SUNNYVALE, Calif., July 24 /PRNewswire/ -- Oak Technology, Inc., a leading provider of embedded solutions for the optical-storage and digital-imaging markets, today announced it has acquired Tucson, Ariz.-based TCD Labs, Inc., a developer of enabling software for compact-disc (CD) recording technology. Combined with Oak's existing rewritable CD (CD-RW) controller technology, this acquisition enables Oak to offer a complete optical storage solution to PC and CD-RW drive manufacturers.
"The TCD acquisition is Oak Technology's first entry into the consumer market and is an instrumental piece of our CD-RW strategy," said Young Sohn, president and CEO of Oak Technology. "With the addition of the TCD software to our product line, we can now provide both drive makers and PC OEMs with an integrated, retail-ready software solution. This allows consumers to take full advantage of the data capture, sharing, and archiving capabilities of the CD-RW format."
Under terms of the acquisition, all assets of four-year-old TCD Labs will be fully absorbed into Oak and will serve as the foundational technology for Oak's newly created Optical Media Software Group. Felix Nemirovsky, former TCD Labs president, will serve as general manager of this new group. Oak will also retain existing TCD Labs customers, such as Symantec, TDK, Plextor, and Liquid Audio, while expanding its customer base to include other key drive makers and PC OEMs.
"Today's consumer has access to an abundance of digital music, video and pictures via Internet and digital-media technologies. We make it possible for the user to personalize and archive this data on CD-R or CD-RW discs," said Nemirovsky. "More than 30 million CD-RW drives needing CD recording software will be shipped this year, with an expected 60 million to be shipped next year. Prices are dropping quickly on CD-RW drives and media, rapidly increasing the number of drives shipped to entry-level users."
The software technology developed by TCD Labs uses a CD-RW drive to create or copy consumer audio, video or computer-data CDs. Its drag-and-drop user interface is designed to ensure ease of recording capability in all Microsoft Windows-based environments, and is universally compatible with all CD-RW drives and controllers.
About Oak Technology
Oak Technology, Inc., a leading provider of solutions for the storage, manipulation and distribution of digital content, is committed to driving the emerging world of connected Information Appliances. The company's fully integrated products and technologies target two key markets: optical storage (CD-RW and DVD for PC and consumer) and digital imaging (advanced copiers, printers, faxes, scanners and MFPs). Founded in 1987, Oak is headquartered in Sunnyvale, Calif., and has sales offices, design centers and research facilities around the world. The company trades on the Nasdaq Stock Exchange under the symbol OAKT. Additional information about Oak and its digital solutions can be found at www.oaktech.com.
The foregoing statements may consist of forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Factors that could cause actual outcome to differ materially from those set forth include, without limitation, the rate of adoption of new technology, the rate of growth of the CD-RW market, the ease of assimilating TCD's technology and people, market acceptance of the software product, competitive pricing actions and marketing programs, among others. For a discussion of such risks, see the Company's most recent SEC Forms 10-K and 10-Q.
NOTE: Oak Technology and the Oak logo are registered trademarks of Oak Technology, Inc. All other product names or company names are mentioned for identification purposes only, and may be trademarks of their respective owners.
SOURCE: Oak Technology, Inc.