A global outsourcing partner for networking and communications 
solutions, Accton Technology Corporation (TAIEX: 2345) designs, 
develops and manufactures innovative,leading-edge technologies with 
and for strategic partners.Leveraging its advanced software technology and 
state-of-the-art hardware, Accton delivers to those partners—top-tier 
networking, computer and telecommunications vendors— superior 
products that are as affordable as they are robust.

History

Founded in 1988 by a small team of networking 
entrepreneurs, Accton Technology Corporation has 
retained its focus on networking and communications, 
with Ethernet technology—wired and wireless—at its core. 
Having achieved significant success, Accton launched its IPO in Taiwan in 1995.

Headquartered in the Hsinchu Science-based Park, Accton is recognized world-wide for its technological expertise, breadth and flexibility of product lines that contribute to the product portfolios of the most highly-regarded computer, networking and telecommunications companies. The company achieved ISO9001 certification for quality in 1993, and, in 2000, was the first company in Taiwan to achieve TL9000 certification. Having won numerous awards over the years for its contributions to information technology, Accton is ranked one of the top five companies in Taiwan for intellectual capital, according to a government study, Intellectual Capital Research. Accton's commitment to that intellectual capital, in the form of R&D, remains strong, with more than 30% of its staff devoted to research and development.

Accton's growth over the years, to US$ 750 million (Accton Group Sales) in 2004, comes both from its design, engineering and manufacturing efforts, and from its portfolio of subsidiaries. Through a series of strategic acquisitions aimed at enhancing Accton's ability to minimize costs while maximizing its products' functionality, the company has part or full ownership of multiple complementary businesses. Its most recent (2003), Arcadyan, a joint venture with Royal Philips, is a company dedicated to developing technology that bridges the gap between networking and consumer electronics.

Technology Portfolio

Accton's research and development focus is evident in the quality of its products. Holder of more than 150 patents for network switching, hub, wireless, broadband, testing and manufacturing technology, Accton puts a great deal of effort into maintaining and improving the core technology that it uses in the products that the company develops with and for its partners. With its subsidiary Acute, Accton has the ability to design and develop its own ASICs for network adapters, switches and broadband access products. This capability helps Accton to have more control over the overall development process, resulting in better products and lower costs.

Accton's Mercury technology, a software platform for Layer 2/3/4 switching, and its Enterprise Access Point software help partners get their products to market faster with lower R&D costs by providing a pre-integrated software application base that adds value to the products as-is, and provides a base for further development for even greater differentiation. Accton places the same priority on excellence in software that it puts on excellence in hardware, so works to consistently update and upgrade its Mercury and Enterprise Access Point software, and to design and develop additional software to enhance product value.

The portfolio of products that Accton has built from those platforms is enormous, and includes L2/3/4 Ethernet, 10G Gigabit Ethernet switches and adapters, Storage networks, a multitude of broadband gateway devices for cable, VDSL, other broadband technologies and high-security Enterprise wireless products. Besides, since it is the epoch of “Digital Home”, products integrated data, voice and video (“Triple Play”) will gradually become a new trend in 2005.

Formula for Success

Accton succeeds thanks to multiple competitive advantages—both its technological advantages and business advantages driven by the company's philosophies. The company's central philosophy, 'Making Partnership Work' is its chief advantage. Accton develops and nurtures long-term relationships with its partners by working collaboratively to build the products that the partners and their customers want. ISO 9001, ISO 14000 and TL9000 standards-compliance helps assure partners of the quality inside the products, and user-friendly 24/7 on-line technical support makes critical resources always available.

Accton's success translates to success for its customers. The company's low-cost manufacturing, hardware design and manufacturing and total hardware/software solutions help Accton's partner clients pursue new market opportunities faster and more economically. Providing high-quality products and services for its OEM/ODM clients, Accton expedites time-to-market with start-to-finish projects completed to ship new products in as little as three months.

Looking to the Future

Trends in the industry and in the adoption of technology guide Accton's research and development focus. The company has identified several trends that will affect its choices in product development.

  • The Integration of Telecom and Datacom 
    As the proliferation of broadband access increases, telecommunication and data communication technologies are converging. Accton will continue to develop broadband access products utilizing multiple technologies to provide solutions for that emerging market.
  • The Integration of Data, Voice and Video
    The Internet has had a dramatic effect on consumers' media expectations. Demanding data, voice, and video services (“Triple Play”) are pushing service providers and enterprise users toward more cost-effective broadband solutions that can deliver higher speed and more reliable QoS to existing core networks. Accton's broadband solutions provide Services Level Agreement (SLA) and QoS all the way to the customers' premises, allowing service providers to differentiate themselves with potential customers by offering extended services. Accton's broadband solutions guarantee a connection without limits.
  • The Integration of Wired and Wireless Communication 
    According to MIC, there were more 60% portable computers equipped with built-in wireless networking capability sold in 2004,and it will reach 90% in 2005. The proliferation of wireless applications and increasing demands for shared broadband access, in addition to the new home entertainment networking technology will mean continued growth for Accton's wireless business.
  • The Enterprise Continues Growth 
    In 2005, the global market in Ethernet and Broadband products will continue to grow, and GbE switches will be more prevailing; scopes of Ethernet will be further applied to MAN, SAN, and WAN. Besides, here will be a tremendous demand in wireless products with security capabilities and the demand of Firewall/VPN will be on the increase; VoIP will be another shining point as well.According to the Radicati Market Analysis Study, the number of wireless users will be 1.2 billion, including Hot Spot users.
Bottom Line

Accton will continue to develop best-of-breed products to meet market needs. Over the coming year, the company is developing switches that range from Layer 2 to Layer 4, CPE and VDSL switches for telecommunications; wireless switches, VoIP Integrated Box, PoE (Power over Ethernet) switches; FTTx fiber to the curb technology; wireless multi-channel gateways and Enterprise access points—and more. Accton's goal is simple: to design, develop innovative high-quality products that are easy to use, affordable, and meet market demand. That's what makes partnership work.

It's All About People

Accton's greatest resource is people. From its inception, the company has made it a priority to create a corporate culture that brings out the best in people. By nurturing relationships with partners and employees, Accton has been able to develop cutting-edge technology, deliver quality products, and, ultimately, achieve success and growth. Accton's logo, the Tree of Wisdom, symbolizes the company's commitment to its partners, its employees, with shareholders and with the local community; and its ongoing investment in art, education and charitable programs prove that commitment.