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RAD GROUP
RAD Group: Breeding Start-Ups and Innovation

The RAD Groups decentralized approach maximizes the advantages inherent in smaller business units - such as flexibility and entrepreneurial spirit - while allowing member companies to share mutually beneficial developments and fostering innovations. - Zohar Zisapel, Founder, Rad Group

History and Profile

The RAD Group was founded by brothers Yehuda and Zohar Zisapel in Tel Aviv, Israel. Both brothers studied electronic engineering at the Technion Israel Institute of Technology and hold MBAs from Tel Aviv University. Yehuda began his career in the 1960s working for Motorola Israel, but in 1973 decided to start his own business importing and distributing computer networking equipment. His company, Bynet, soon became Israels leading systems integrator. In 1981, his brother Zohar joined him to begin work on what was then a revolutionary idea: developing and manufacturing telecom access devices in Israel for export. They started a new company in a corner of the Bynet offices and gave it the name RAD (for Research & Development) Data Communications. RAD is now considered to be the mother of Israels hi-tech industry.


RAD soon gained notoriety for its first products, which were miniaturized modems that reduced space and electric consumption, since they were fed from the electricity in the phone line rather from an external source.


Over the past 30 years, the RAD Group has grown to include many different independent companies that develop, manufacture and market product solutions for the networking and telecommunications industry. Some have gone public on Nasdaq and some were later sold to other telecom leaders. The group typically started a new venture with a business idea from an entrepreneur or a member companys management team. Initial funding is provided by the groups founders, together with venture capital firms. Since its establishment, the group has spawned more than 185 companies, issued eight IPOs and participated in 19 mergers and acquisitions.
(Pictured above: Airmux-5000 Broadband Ethernet Radio, courtesy of The RAD Group)


RAD Group is currently comprised of 10 companies, five of which are traded on Nasdaq and the remainder privately held. Member companies maintain several dozen international offices and are associated with more than 300 channel partners in 165 countries. The group has won many awards including the Business Red Herring, Internet Telephony Conference "Best in Show", Editor's Choice Awards from several industry magazines, including Network Computing. The RAD Group also sponsors RAD University and Protocols.com, leading sites for network and computer science information and reference materials. (Pictured: MiRICi- EI/TI Miniature Ethernet Remote Bridge, courtesy of The RAD Group)

Highlights

  • RADs first successful product was a miniature (by 1980s' standards) computer modem. The product quickly became a commercial success and evolved into RAD Data Communications, the largest company within the RAD Group. 
  • In 1985 RAD provided initial funding and support to develop a pioneering Ethernet switch; one of the first companies to offer this.
  • In 2008, RAD Data Communications and Ceragon Networks Ltd joined forces to deliver optimal mobile backhaul networking. That same year, it won the GSM Association's Global Mobile Award for Best Network Quality Initiative (for its LA-130 DSL cell-site gateway).
  • Frost & Sullivan presented its 2010 Global Price Performance Value Leadership of the Year Award in Carrier Ethernet Demarcation Devices to RAD Data Communications.
  • Radwares award-winning application-smart switches are deployed by thousands of clients worldwide. TMC named Radware's Alteon 10000 Application Delivery Controller (ADC) a recipient of the 2011 Unified Communications Product of the Year Award.
  • In 2007, Radware acquired Covelight Systems and in 2009, Nortels Application Delivery business (Alteon) and now offers them under a merged brand, Radware Alteon.
  • In 2010, Radvision launched first room endpoints (the XT1000 and XT1200), followed in 2012, by the XT5000, and the SCOPIA Unified Communications Gateway for Microsoft Lync. In March 2012, Canada-based Avaya entered into an agreement to acquire Radvision for $230 million.
  • SANRAD was acquired in 2012 by OCZ Technology Group, Inc., a leading provider of high-performance solid-state drives (SSDs) for computing devices and systems.


Returns

  • In 1985 RAD Groups annual revenues reached $5.5 million. By 1987, RAD had reached $10 million in annual sales.
  • Sales for the RAD Group were $1.2 billion in 2011. The company employs 4,500 people.
  • Radware Integrated Application recorded 2011 annual revenues of $167.0 million, an increase of 16% compared with 2010.
  • RAD COM - Revenues rose 15% to $22.0 million for the full year of 2011 from $19.2 million in 2010. Gross margin for the year increased to 69.6% from 66.2% in 2010.
  • Ceragon - Revenues for the fourth quarter of 2011 reached $118.5 million, up 77% from $67.0 million for the fourth quarter of 2010, and up 2% from $116.1 million in the third quarter of 2011.



Last modified: 7/29/2012 pic