NeoMagic's research and development efforts focus on semiconductor solutions that provide all of the major electronics functions of the handheld system on a single chip. But it is not just a question of integration. The value of NeoMagic's products are in the expanded features and performance that they enable, features that allow device manufacturers to provide innovative and differentiated devices to their customers. NeoMagic System-on-Chip solutions bring engaging high-performance multimedia capabilities - graphics, video, and audio - to small, low-power devices for mobile communications, productivity, and entertainment. NeoMagic began by mobilizing multimedia for notebook PCs. As many as half of all notebook PCs made during recent years used NeoMagic multimedia chips. Now the company has shifted its strategy to provide highly integrated Application Processors for smart handheld devices such as Personal Digital Assistants (PDAs), web pads, handheld gaming systems, portable music and video players, and advanced cellular telephones.