Israeli R&D gets double shock

TEL AVIV, Israel, June 28 (UPI) -- Israeli R&D got a double shock Wednesday: Juniper Network announced a massive downsizing, and Intel said it will sell its stake in communications research.

Juniper had initially considered closing the doors on its Israeli research and development but now says it will let 36 of its 90 employees go, according to a report in the Israeli business magazine TheMarker.

"In March 2005 Juniper purchased the Israeli company Kagoor Networks, which specialized in session border control technology for (Voice over Internet Protocol) networks, for $67.5 million," the magazine report said. "Since then, this has become the focus of Juniper's VoIP services, particularly regarding security."

Intel, meanwhile, is selling its "entire communications processor operation" to fellow technology company Marvell for $600 million in a deal expected to close within five months, according to the report.

The company's Petah Tikva headquarters became Intel's regional development center for communications chips, but the announcement effectively means Intel is leaving the market, the report said.

"Intel's communication chip venture never took off. In 2004, the last year for which Intel published separate figures for the communications division, it had an operating loss of $791 million, based on revenues of $5 billion," the report said.

The 500 Israeli employees of Intel's communications chip division will be transferred to Marvell. Intel employed 1,400 people in the division worldwide, the report said.