Product Search:

To Our Shareholders

The telecommunications space continues to be not only very exciting … but also quite unpredictable. With the mergers and combinations at the TEM as well as the carrier levels, our ability to predict exactly when things will happen remains difficult. In this letter I have outlined the trends that we believe will drive our markets, and our strategies to address those trends to leverage our business success. In a very short period of time in the telecom industry, we have achieved a strong reputation for high quality/high performance products and very capable customer and engineering support during the design-in cycle. This has allowed us to solidify ourselves as a “trusted partner”, which gives us access to key decision makers that until the past few years we were not able to reach. We have built an enviable reputation with companies in this market such as Alcatel-Lucent, Nokia Siemens Networks, Nortel Networks, Samsung, Sun, AT&T, Ericsson, CCPU and Emerson Network Power to name a few.

Interphase has an exciting and yet exceedingly busy year ahead, with major priorities established in all areas of the company. We will do our very best to leverage the channels into the TEMs that we have invested in over the past several years to develop and drive as many revenue producing solutions as possible through these channels; while maintaining a streamlined infrastructure within all functions of Interphase to remain competitive.

As I hope you can see, we have given a lot of thought to the future of our company, and while there is no question that achieving all of the priorities we have laid out will be a challenge, there is also little doubt in my mind that this Interphase team is up for that challenge. You can be very proud of what this team has accomplished in 2006, and I encourage you to watch the metrics of our execution in 2007, because it will be a pivotal year in our company’s history. These are exciting times for our company and I want to thank you for your support.

With warmest regards,

Gregory B. Kalush
Chairman, President and CEO

2007 Annual Report