Vitesse Semiconductor
| Company type | Public |
|---|---|
| Industry | Semiconductor industry |
| Predecessor | Vitesse Electronics Corporation |
| Founded | 1984 |
| Founder | Dr. Alfred S. Joseph |
| Defunct | April 28, 2015 |
| Fate | Acquired by Microsemi Corporation |
| Headquarters | Camarillo , United States |
Area served | Carrier and Enterprise network infrastructures |
Key people | Dr. Alfred S. Joseph (founder) |
| Products | Ethernet integrated circuits, Ethernet switching solutions, Ethernet media access controllers, Ethernet transceivers, physical media devices, transport processing products |
| Parent | Microsemi Corporation (since 2015) |
Vitesse Semiconductor was a fabless semiconductor firm headquartered in Camarillo, California, focusing on delivering advanced Ethernet integrated circuit solutions tailored for Carrier and Enterprise network infrastructures. On March 18, 2015, Microsemi Corporation declared its intention to acquire Vitesse, with the transaction completing on April 28, 2015.
Corporate history
Established in 1984 by Dr. Alfred S. Joseph under the name Vitesse Electronics Corporation, the company originated as a spin-off from Rockwell International and initially secured $30 million in funding from Norton. Subsequently, Dr. Joseph obtained venture capital investments from Sequoia Capital and New Enterprise Associates. The company was rebranded as Vitesse Semiconductor in 1987 and went public through an IPO in 1991. Growth was further driven by acquisitions such as XaQti in 1999 and both Sitera and Orologic in 2000.
Products
Pioneering early advances in gallium arsenide (GaAs) integrated circuits, Vitesse offered an extensive range of Ethernet switching solutions. Their portfolio encompassed Carrier Ethernet switch engines designed for customer-premises equipment, access networks, wireless base stations, mobile access systems, fiber and microwave wireless backhaul, as well as metropolitan networking. Their Ethernet switches were suitable for desktop environments, workgroups, and LAN infrastructure deployments.
Additionally, the company manufactured Ethernet media access controllers utilized in enterprise modular switching platforms and systems supporting Ethernet-over-SONET/SDH and Ethernet-over-OTN for access, metro, and long-distance carrier networks. Their Ethernet transceivers provided support for 10/100/1000 BASE-T over category 5 copper cabling and fiber optics applicable to PCs, consumer electronics, and LANs; certain models incorporated packet timing and synchronization capabilities.
Vitesse’s connectivity offerings included mixed-signal physical media devices, physical layer components, crosspoint switches, and signal integrity devices enabling system interconnections through optical fiber, copper cabling, or backplanes. Their transport processing products featured framers, mappers, and switches capable of handling data rates up to 10 Gbit/s for applications involving SONET/SDH, Ethernet over SONET (EoS), and Optical Transport Network (OTN).
Sales were conducted directly to OEMs and original design manufacturers (ODMs), alongside distribution via third-party resellers and manufacturing service providers.
Mini-Supercomputer
Vitesse ventured into the scientific computing market by developing a minisupercomputer based on its GaAs technology; however, this division was discontinued in 1987 after only a prototype demonstration model was produced. The decision was influenced by challenges in raising adequate capital and concerns regarding extended time-to-market intervals.
Securities fraud
In 2007, Vitesse resolved a class action lawsuit with a $10.2 million settlement addressing allegations of securities fraud tied to options backdating practices, acknowledging failures to disclose material adverse information. In 2010, former executives Lou Tomasetta and Eugene Hovanec faced charges related to securities fraud connected to these activities. Later that year, Vitesse reached a settlement with the United States Securities and Exchange Commission (SEC), paying $3.0 million to conclude investigations into its historical stock option grants and accounting procedures.
Turnaround
From 2012 through 2014, Vitesse completed several equity financings to secure funds: $17.1 million in December 2012, roughly $40.2 million in June 2013 at a price of $2.15 per share, and $23.2 million in June 2014 by issuing 7.5 million shares at $3.35 each. These capital raises were intended to bolster working capital and support general corporate activities. Notably, during the June 2014 financing round, significant investor Raging Capital Management LLC expanded its ownership by acquiring an additional 1.6 million shares, increasing its total stake to approximately one-quarter of the company's outstanding shares.
External links
- Vitesse Semiconductor - Archived snapshot as of March 15, 2015
- Articles with short description
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