Tel Aviv company Waves has signed an agreement with Hyundai Electronics to manufacture and develop a new chip that improves the sound quality of audio systems, "Globes" has learned. According to Waves founder and general manager Gilad Keren, sales of the product are expected to reach $20 million in the first three years, and $15 million in the following year. This is the first of a series of agreements between the two companies.
The new chip, "MaxxBass", developed by Waves of Israel, accords the listener an illusion of a bass effect, without the bass actually existing. On the basis of the agreement, the two companies will become joint marketers of the product, designed for the consumer market.
Keren says sales forecasts for the first generation chip, due to come off the production line at the end of 1999, is ten million units in three years. The companies are also expected to put out on the market another chip in mid 2000, which will further increase revenues.
Waves, founded in 1993 by Meir Shashua (35) and Gilad Keren (39), started off as a developer of signal processing software and user interface for professional multimedia and audio markets. In the past two years, the company’s executives decided to move to developing products for the consumer market. Waves has fifty employees, and last year posted sales of $3.5 million.
Invested in the company is Bank Hapoalim (which holds options to purchase 5% of the shares). The company is also negotiating to raise capital privately through investment bank Jerusalem Global.
Published by Israel's Business Arena March 30, 1999