CENTILLUM COMMUNICATIONS VOIP SEMICONDUCTOR PROFILE
Centillium Communications, Inc. (NASDAQ: CTLM), like many other
VoIP chip companies, starterd out with a major focus on the DSL and ADSL market, and then turned to VoIP chips as a natural
extension. So far, Centillium has seen significant revenue growth form its VoIP chips. For its second quarter ended June
30, 2005, Centillium reported total revenues of $18.6 million, compared with revenues of $17.2 million in the first quarter
of 2005. In that quarter VoIP chip revenue was in the order of $3.2 million, compared to about $0.5 million for the second
quarter of 2004. In terms of percentage of total revenues, VoIP revenue for the second quarter of 2005 was 17 percent of total
revenue compared to just 3 percent of total revenue for the second quarter of 2004.
For the six months ended June 30, 2005, Centillium’s VoIP
product revenue was 15 percent of total revenue or $5.4 million compared to just $0.5 million or 2 percent of total revenues
for the six months ended June 30, 2004.
For all of 2005, Centillium anticipates that VoIP revenue will be
significantly higher than 2004.
The vast majority of Centillium’s other revenue comes from
DSL chips. For the first six months of 2005, Centillium also generated $1.4 million of revenue from its Fiber-To-The Premises
chips.
During the second quarter of 2005, Centillium expanded its line
of Palladia400 chipsets, which are integrated Voice-over-IP (VoIP) solutions for the ADSL market. According to the CEO
of Centillium, Faraj Aalaei, “The Palladia 400-2P includes two voice channels and targets home gateway applications,
while the Palladia 400-4P with four voice channels was developed for small office/home office (SOHO) applications. The two
chipsets provide a superior solution for consumers demanding faster connectivity with more integrated features, such as VoIP.”
In June 2004, Centillium officially entered the VoIP market with
the introduction of its Atlanta 100 carrier grade chip solution for carrier grade (high voice quality) customer premise equipment.
Centillium has since April of 2004 worked with UTStarcom (NASDAQ: UTSI) to promote VoIP solutions.
Centillium’s major customers, for all of its products, include
NEC, Sumitomo and Lucent Technologies. Sumitomo accounted for about 30 percent of its total revenue in the second quarter
of 2005, NEC 22 percent and Lucent Technologies, 15 percent.
Centillium has licensed the MIPS microprocessor core from MIPS Technology
for use in VoIP Solutions.
