SBE, Inc. engineers and provides standards-based hardware and software products to original equipment manufacturers (OEMs) who embed its products into their systems to provide data storage and network connectivity solutions for the enterprise storage and telecommunications markets. The Company's operations are organized into two business segments: Embedded and Storage Products. The Embedded Products segment designs and manufactures a range of embedded computing products, including Voice over IP (VoIP), T1/T3 adapter cards and programmable intelligent processing platforms. The Storage Products segment develops standards-based Internet Small Computer System Interface (iSCSI) software for Internet Protocol (IP) based storage market. During fiscal year ended October 31, 2005 (fiscal 2005), the Company acquired PyX Technologies, Inc. (PyX), a privately held software company that developed iSCSI products for the enterprise storage market. The iSCSI provides remote access to secure multi-terabyte storage using desktops, laptops, personal digital assistant (PDA), or other mobile devices. Storage Products The iSCSI technology uses the small computer system interface (SCSI) command set over transmission control protocol (TCP) and IP, enabling any requesting node on the IP network (the initiator) to contact any remote storage server (the target) and perform block input/output (I/O) on the target as if it was a local hard drive. The iSCSI has no distance limitations, can utilize existing network infrastructure, does not require specialized training, and takes advantage of Ethernet's economies of scale. The iSCSI is used for storage applications serving databases, streaming audio and video servers, as well as clustered computing. iSCSI with full Error Recovery Level 2 (ERL2) enables robust disaster recovery, back up, and replication over remote sites through existing IP wide area networks (WANs). The Company's iSCSI solution is scalable from wireless fidelity (Wi-Fi) to 10Giga for IP storage area networks (SANs). The Company's PyX iSCSI target supports most Linux distributions and is compatible with any compliant iSCSI initiator under any operating system distribution, including Linux, Windows and Solaris. A TOE is a specialized TCP/IP protocol accelerator. In the form of a network interface card (NIC), it is designed to reduce the amount of host central processing unit (CPU) cycles required for TCP/IP processing and maximize Ethernet throughput. This is accomplished by offloading TCP/IP protocol processing from the host processor to the hardware on the TOE. Its TOE card is sold individually or bundled with the iSCSI software. It is designed to provide access to networked storage devices through the Internet without impacting the host CPU. Embedded Products SBE announced two different products featuring TI's, application specific integrated circuit (ASICs) supporting VoIP and video over IP. These modules are available as stand-alone solutions for existing systems or can be attached to the Company's processor platform in conjunction with other SBE I/O modules to create multifunction gateway blades. Digital signal processing (DSP) products allow the Company's customers to protect and leverage their investments in existing DSP code. SBE's VoIP module with capacity, up to optical carrier 3 (OC3) is based on the PCI telecommunication mezzanine card (PTMC) standard form factor, and supports up to 2304 premium carrier class voice channels. The TNET3010 DSPs are integrated with Telogy Software, which supports features for compression, echo cancellation, voice activity detection and many wireless codecs. SBE's module based on TI's TMS6415 device provides a contemporary triple play solution. Using TI's TMS6415 device, which is a gigahertz DSP, translates into a spectrum of application opportunities ranging from adaptive antenna arrays to smart cars to artificial vision while increasing the bandwidth and channel capacity of existing real-time applications, such as wireless base stations, IP-based video, high-speed broad