Profile: Intellon Corporation (ITLN.O)

Intellon Corporation, incorporated in 1989, is a fabless semiconductor company that designs and sells integrated circuits (ICs) for high-speed communications over existing electrical wiring. Its ICs enable home connectivity, which is the sharing and moving of content among personal computers and other consumer electronics products in the home. The Company also sells its ICs for use in powerline communications applications in electric utility and other commercial markets. In the utility market, its ICs enable various smart grid applications, which help utilities monitor and manage in-home electricity consumption during peak periods. In the commercial market, the Company’s ICs enable the distribution of broadband services over existing electrical wiring and coaxial cable to individual units within apartment buildings and other multiple dwelling units. The Company sells two families of powerline ICs: HomePlug-based ICs, which enable connectivity in digital home, utility and commercial applications, and command and control ICs, which are used primarily in the trucking industry to monitor anti-lock braking systems. As of December 31, 2008, it had shipped over 33.8 million powerline communications ICs, including 26 million HomePlug-based ICs.

The Company’s largest and primary market is the digital home, which it defines as a home enabled with high-speed connectivity among devices, such as personal computers and consumer electronics products. In the digital home, it ICs are used in both powerline-to-Ethernet adapters, which can be used to connect products having Ethernet ports, and in embedded products, where the Company’s ICs are incorporated directly into the product. As of December 31, 2008, most of the Company’s HomePlug IC products have been used in powerline-to-Ethernet adapters to provide connectivity between broadband modems or routers and personal computers, set-top boxes, gaming consoles and other electronic products, through the existing electrical wiring within a home.

HomePlug-based ICs

HomePlug-based ICs are based on HomePlug Powerline Alliance specifications. The Company’s HomePlug-based ICs include its third-generation HomePlug 1.0 IC, its first generation HomePlug 1.0 with Turbo IC, and its second and third generation HomePlug AV-based ICs. The Company’s HomePlug 1.0 ICs principally target data and basic broadband connectivity. Its HomePlug 1.0 with Turbo ICs are based on and interoperate with HomePlug 1.0. Both its HomePlug 1.0 and 1.0 with Turbo ICs feature built-in 56-bit data encryption standard (DES) security.

The Company’s newest products, its HomePlug AV-based ICs, have increased throughput that enables gamers, television viewers and music listeners to distribute standard or HD video and audiophile quality audio over existing electrical wiring in the digital home. These ICs provide forward error correction, channel adaptation and quality of service guarantees. Its HomePlug AV-based ICs use built-in 128-bit advanced encryption standard (AES) security. The Company has commenced an end of life transition period for its INT6000 IC. The Company sells all of its HomePlug-based products with both a baseband transceiver component, which transmits and receives the signal, and an analog front-end component, which performs analog-to-digital signal conversion.

Command and Control and Other Products

The Company sells its earlier generation command and control ICs, which are used primarily in the trucking industry for anti-lock braking system monitoring. Its command and control ICs are the P485 baseband transceiver and P111 analog front-end ICs. These products are based on two industry standards, EIA-600 (the CEBus standard) and SAE J2497 (the brake monitoring solution for tractor-trailer trucks). The Company also offers its customers development tools that are necessary for them to develop products using its powerline communications ICs.

The Company competes with Arkados Group Inc., Conexant Systems, Inc., Maxim Integrated Products Inc, Panasonic, Gigle Semiconductor, CopperGate Communications, Ltd, STMicroelectronics, Spidcom Technologies S.A., Atheros Communication Inc., Broadcom Corporation, Entropic Communications, Inc., Intel Corporation, Marvell Technology Group Ltd., Realtek Semiconductor Corp., Texas Instruments Incorporated, Technology, Inc., Echelon Corporation, Esco Corporation, Maxim Integrated Products, Inc. and Yitran.