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Galileo Technology Inc. (Nasdaq: GALT), a market leader in communications systems on silicon, owes in good part its prominent market position to the successful management of a dual location strategy – Israel for its technology development and the United States for its business development.
Galileo has positioned itself as one of the leading specialized suppliers of communications integrated circuits (IC's) for the Internet infrastructure, with solutions for Local Area Networks (LANs), Metropolitan Area Networks (MANs), and Wide Area Networks (WANs). The latest target of Galileo's advanced chips is the emerging and revolutionary market of Converged Networks, in which voice, video and data are carried seamlessly over the Internet and Intranets.
Galileo's products are at the heart of many advanced communications systems built by leading OEMs, such as Accton, Alcatel, Cisco Systems, D-Link, Cabletron, Ericsson, Fujitsu, Hewlett Packard, Intel, Lucent, Marconi, NEC, Base Communications, Nortel Networks, and Siemens. Galileo today serves more than 500 customers worldwide, including most data communications and telecommunications leaders.
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Employing more than 275 people world-wide, Galileo’s business is run from San Jose, California, and maintains corporate and R&D headquarters in Manof, Israel. The company operates three remote design centers throughout Israel (Tel Aviv, Haifa, Caesarea) in order to gain access to the most qualified engineering talent in the country, while the San Jose site manages several remote sales offices around the world.
"Our business depends on our people and our customers," states founder, chairman and CEO Avigdor Willenz, whose office overlooks the hills of Israel’s historic Galilee region. "Our ability to understand the market emanates principally from the US. Therefore, it makes sense to have our business and marketing professionals in Silicon Valley."
This strategy has more than paid off, yielding dramatic bottom line results for this global communications semiconductor company, which derives 60% of its revenue from the US and 40% from Asia and Europe. In 1996, sales totaled $6.5 million. In 1997, this figure more than quintupled to $36.5 million, and in 1998, it rose again to $51.6 million, with profits of $15.5 million. In 1999, revenue climbed to $79.7 million, with profits of $26.1 million. Annual growth is expected at a healthy 40% - 50%.
"Galileo has an unique ability to predict market trends and position itself to meet the needs of our customers within these markets," Willenz says. "For example, in 1995 we anticipated the dramatic shift to switched Ethernet, which resulted in our highly successful development of the industry’s first merchant integrated switch Ethernet controller. This ability to foresee change has continued through several product generations for us, and is now driving our strategic shift into product development targeting high-value voice, video and data Internet working and switching products."
Galileo recently introduced some of the industry’s most advanced products in these areas and will announce others within the next 12-24 months. In addition, the company anticipates a significant opportunity in the market of Converged Networks, which is characterized by numerous challenges in system complexity, in resolving bottlenecks, and in providing high bandwidth solutions.
"Galileo opens up bottlenecks in the Internet and Intranets, inside corporations, between corporations and the Internet, and between end users and remote access devices," Willenz explains. "We do so while facilitating the handling of multiple types of traffic flows – thus, creating a highly defensible system and long-lasting value."
Willenz believes Galileo’s potential is unlimited. "By staying close to our customers and understanding their needs, continuing to hire the best people, and investing in top-notch tools, our company will remain one step ahead of the competition."
For more information on Galileo: call 1-888-GALTEK-1
or visit its website at http://www.galileoT.com.