SiRF Technology Holdings Inc. Q4 2008 Earnings Call Transcript

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2009-02-11 10:38:14.0

Tags: Product, Call Transcript, Earnings, Jefferies & Co., GPS, Handhelds, Consumer Electronics, Personal Technology, Hardware, Seeking Alpha, SiRF Technology Holdings

Question-and-Answer Session

Operator

(Operator Instructions.) And it looks like our first question comes from Adam Benjamin of Jefferies. Your line is open.

Adam Benjamin - Jefferies & Company

Hey, thanks, guys, and congrats on the deal. I'm just curious, as you look at this – you look at CSR, and they bought NordNav and CSP a while back. They tried to go a soft GPS route. I know they've introduced the BlueCore7. I've talked to many industry folks who have indicated that that's probably not meeting the specs of the Tier 1s as it relates to GPS.

And so, going forward, they were clearly in search of a hardware solution, and you made sense. But I'm just curious as to how you see that moving forward, specifically, Kanwar, how you integrate the products, how you put them together, how long that takes until you can really bring a product to market and start thinking about getting design wins from there?

Kanwar Chadha

Hi, Adam. Thanks for the question. And as we said, our customers are really looking for market-proven leading-edge solutions as they move towards these multifunction radio environments. These are very important developments in the marketplace. By combining the best-in-class GPS with best-in-class BlueTooth, FM, and other connectivity elements, we believe the combination can deliver much stronger product lines than either of us could have delivered individually.

So we think the combination creates a more powerful platform for our customers.

The integration itself will obviously happen in two to three phases. Phase one would be looking at an architectural level and trying to combine – with the existing products, a more complete solution for our customers. In phase two, we could take advantage of some interesting packaging technologies. Obviously, in phase three, you could deliver more integrated single-die type of products.

So we would have parallel efforts to make sure that we can deliver what the market needs in a timely manner. And we expect to start generating revenue synergies even before a fully-developed combo product is delivered.

Adam Benjamin - Jefferies & Company

But, Kanwar, just to get more specific, given the design cycles for the Tier 1s in terms of handsets, the ones – the timing there will be quite some time. I'm just trying to get a better understanding. Are you missing the window here for connectivity, and giving the leaders, say, Broadcom, NTI, a big opportunity and creating a lag time for you that doesn't play out for a couple years from now?

 

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