Oak Technology Inc. was acquired by Zoran Corporation in August 2003. Oak Technology, along with its subsidiaries engages in the design, development, and marketing of integrated semiconductors, software, and platform solutions to original equipment manufacturers worldwide that serve the optical storage and digital imaging equipment markets. Its digital imaging products consist of semiconductor hardware and software that enables users to print, scan, process, and transmit documents to computer peripherals that perform printing functions. The company's optical storage products consist primarily of integrated circuits and supporting software and firmware, all designed to store and distribute digital content, thereby enabling its customers to deliver systems to the end user for the home and enterprise. Oak Technology is a 'fabless' semiconductor company, in that it contracts with independent foundries to manufacture all of its integrated circuit products. Oak's operations are organized along its two market-focused groups: the Optical Storage Group and the Imaging Group. The Imaging Group is comprised of the combination of its Xionics Document Technologies, Inc. and Pixel Magic subsidiaries, serving the digital imaging equipment market. In September 2002, it promoted John Squire to be senior vice president and general manager, Optical Storage Group. In October 2002, the company entered into an agreement to acquire Terralogic, Inc. a developer of video/audio processing hardware and software for digital home entertainment platforms. The acquisition would be accomplished through a merger pursuant to which TeraLogic's stockholders would receive a cash payment of $38 million. Following the merger, TeraLogic would become a subsidiary of Oak and as a result Oak would become responsible for TeraLogic's debts and obligations.