Refocused ARC to divide and slash

The company (San Jose, Calif.) has evolved from a provider of a configurable CPU cores into a provider of configurable platforms aimed at specific markets, according to David Fritz, ARC's vice president of marketing. It will now focus on the digital media, networking/storage and wireless markets where its platforms have already had success.

The company will divide into two separate operating units: SoC Solutions, which will focus on CPU cores, peripherals and development tools; and Embedded Software. The SoC Solutions group will continue to cultivate close development partners hips with key OEMs in the target markets. The Embedded Software group will focus on developing marketing partnerships such as its existing reseller agreement with Motorola for Metaware.

Operations deemed to be outside the focus areas will be curtailed, ARC said. For example, its USB design effort will conclude with a product release in the second quarter. The project will be moved to sustaining status and transferred to an engineering group in England.

Overall, ARC will cut its operating cost structure by 40 percent by the end of 2004, Fritz said.