Networking chipmaker ClariPhy Inc. has tapped a former senior executive at Broadcom Corp. to lead the company.
Nariman Yousefi, a 17-year Broadcom veteran who helped establish the company’s networking group, took over as president and chief executive of ClariPhy last week.
Both companies are based in Irvine.
ClariPhy is aiming to make the shift from a primary focus on research and development to significant revenue and eventual profits.
“I’ve been through a similar experience,” said Yousefi, who held numerous management positions with Broadcom, helping the company grow from an emerging company in the mid-1990s to market leader for Ethernet technology.
Most recently he served as senior vice president of Broadcom’s enterprise networking group, where he oversaw more than 1,300 employees and a $1 billion business line. It included a broad portfolio of networking products such as Ethernet switches, controllers, optical solutions, storage products, security and embedded processors.
Background
He’s also held engineering management positions at Irvine-based drive maker Western Digital Corp. and Standard Microsystems in New York.
ClariPhy makes chips that allow for the transfer of data at speeds up to 100 gigabits per second, an emerging market driven by demand for video, music, photos and other data on phones, tablets and other devices.
ClariPhy also makes chips that handle data at 10 gigabits per second, the current standard.
Both versions of the chips convert analog signals to digital in optical networks, which use pulses of light to transmit data.
“The technology and product placement is what interested me,” Yousefi said.
He replaced cofounder Paul Voois, who will remain with the company in an executive role and focus on corporate strategy and new product management.
“We’ve really reached that point in a start-up company’s lifetime from an R&D technology focus to a growth, scaling focus,” Voois said. “Now is the right time to bring in a CEO who has that experience.”
Competition
Competitors developing 100-gigabit networking include San Jose-based Cisco Systems Inc., Huawei Technologies Co. Ltd. in China, and Ontario, Canada-based Nortel Networks Corp.
Yousefi sees plenty of opportunity for his new company.
“Many tier-one networking companies are relying on our catalogue to be a major part of the next generation of 40-gigabit and 100-gigabit networks,” he said. “ClariPhy is ahead of the competition.”
Hiring
Growing demand led the company to double its employee count to about 100 in the last 12 months. It plans to continue hiring engineers here and globally, according to Yousefi.
The company recently closed an $18.5 million financing round after securing an additional $4.5 million from a strategic partner.
That brought ClariPhy’s fundraising to an esimated $50 million since it started in 2004, with $42.5 million coming in the last 18 months. Officials wouldn’t disclose funding totals or annual revenue.
The latest round of venture funding was led by Europe’s Nokia Siemens Net-works, which makes wireless and other networking gear.
Nokia Siemens, the Netherlands-based venture of Germany-based Siemens AG and Nokia Corp. in Finland, is looking to ClariPhy’s chips to help meet growing demand for network capacity spurred by digital TV, smartphones, cloud computing and other uses.
Existing investors that participated in the funding round include Norwest Venture Partners and Allegis Capital LLC, both of Palo Alto.
San Jose-based Oclaro Inc., which makes electronics in optical networks, also is an investor, as are some undisclosed networking companies.
The recent investments will go toward research and development, according to Yousefi, who alluded to a possible public offering in the future.
“It’s too early to project the timeline,” he said. “That depends on how fast we ramp up production.”
ClariPhy moved to Orange County from Santa Clara in 2004.
