grm52-3.gif (6802 bytes)

IT Background & Trends
    Internet Background
    Silicon Valley History
    Silicon to Internet Valley
    Bay Area Regional Guide

Industry Leaders
   Top 100 Magazines
    Top 100 Companies

E-commerce  Services
    Web Influence
    Hyperlink Mechanics
    FAQ & Contact Info

Internet Valley, Inc.

    Mountain View
    San Francisco #1
    San Francisco #2
    European Mirror


Company News


3Com® Corporation Acquires Euphonics, Inc. Accelerates Move To Converged Networks


SANTA CLARA, CALIF. , December 4, 1998 -Continuing to drive the convergence of audio, video and data communications, global networking leader 3Com Corporation (Nasdaq: COMS) today announced it has acquired Boulder, Colorado-based EuPhonics, Inc. EuPhonics is a leading developer of audio software that drives integrated circuits, sound cards, consumer electronics and other hardware. Through this acquisition, 3Com will create a new category of products that merges desktop and mobile modems and network interface cards with sound capabilities to drive IP telephony, LAN telephony and streaming multimedia.

The transaction, valued at $8.3 million, includes cash for the outstanding shares, assumption of EuPhonics employee stock options, and transaction costs, and will be accounted for as a purchase. The charge for in-process technology associated with the acquisition is not material and will be included in research and development expenses in the second quarter of fiscal 1999. The remaining purchased technology and goodwill will be amortized over a period of four years. The acquisition is not expected to materially impact 3Com's fiscal 1999 results.


Audio: Critical Internet Medium

Audio is an increasingly important media type in our connected world. MP3-encoded music, and speech and music streamed over the Internet, deliver information or entertainment. Telecommunications - particularly voice over IP -- continues to be a growing application for computers. The integration of the technology developed by EuPhonics and 3Com is expected to improve the user experience, lower cost and simplify system design.


3Com / EuPhonics: Driving Network Convergence

The acquisition of EuPhonics allows 3Com to drive the integration of PC-based multimedia audio with 3Com’s leading communications products. 3Com will now be able to integrate audio and communications solutions for PC OEMs, consumers and every size of enterprise beginning in Spring 1999.

"Acquiring EuPhonics’ world class audio expertise is a windfall for 3Com," said Bob Suffern, vice president of business development for 3Com’s personal communications division. "Adding EuPhonics’ audio expertise to 3Com’s industry-leading modem and NIC products will speed the deployment of IP telephone, LAN telephony and improve the networked multimedia experience."


Microsoft on 3Com and Euphonics

"Individually, 3Com and EuPhonics have both made significant contributions to the Windows platform. 3Com’s long history of working with Microsoft on modem technology along with EuPhonics’ work to help us innovate the DirectSound and forthcoming DirectMusic APIs bring extraordinary value to consumers who work, learn and play on Windows-based platforms," said Aaron Higgins, technical evangelist at Microsoft Corp. "Combined, we look forward to the great advances they will help bring to Windows users."

"EuPhonics is thrilled by 3Com’s drive to integrate audio and communications," said Jeff Barish, founder of EuPhonics, Inc. "EuPhonics’ unparalleled audio assets and expertise will audio-enrich 3Com’s branded, end-to-end networking products. Job one for the EuPhonics team is the rapid integration of our technology into 3Com’s products. There are great opportunities to improve consumer experiences over an IP connection and to rationalize the audio/comms subsystems of OEMs."

Will Strauss of DSP market watcher Forward Concepts said, "It appears to be a smart move by both parties. 3Com has already demonstrated the benefits of field-upgradeable consumer products with their X2 to V.90 modem migration. The easy upgrade of programmable DSP platforms appeals to OEMs as both a cost-saving technique as well as a method of obsolescence-proofing their products." Strauss went on to say, "EuPhonics has a unique audio IP portfolio which can be easily ported to the same DSP platform that provides the PC connectivity for which 3Com is famous. Forward Concepts has long extolled the benefits of DSP-based products of the type that 3Com can offer through this acquisition, and it represents another step toward what will soon become the DSP century."

Convergence of modem and audio technology is demonstrated by the increased integration into modems of telephony features such as telephone answering machines and full duplex speakerphone capabilities. Another area of explosive growth is on-line gaming, which requires both high quality audio as well as the fastest data communications solutions. The integration of audio and communications can enhance all of these activities while lowering the overall system and support costs to the PC OEM.


EuPhonics, Inc.

EuPhonics, Inc. is based in Boulder, Colorado and has 14 employees. It develops software that drives the hardware of music synthesis industries. Founded in 1987, EuPhonics licenses music synthesis and audio effects software to volume manufacturers of integrated circuits, sound cards, computers, consumer electronics, and games. EuPhonics has provided technology for industry leaders Analog Devices, Digidesign, Emu, Lexicon, Roland, S3, VLSI Technologies, and Yamaha.


About 3Com Corporation

With more than 200 million customers worldwide, 3Com Corporation connects more people to information in more ways than any other networking company. 3Com delivers innovative information access products and network system solutions to large, medium and small enterprises; carriers and network service providers; PC OEMs; and consumers. 3Com—More connected.™ For further information, visit 3Com's press site at


3Com Contact
Director, PR
Bob Ingols
tele: 408/326-8002
fax: 408/326-5032

Suggestions, comments,  questions? Contact us


Copyright ©1995-1999, InternetValley Inc.