A simplified two-step quaternary signed-digit addition algorithm is pr
esented. In contrast to the previously reported techniques using a lar
ge number of six-variable or four-variable minterms, the proposed algo
rithm requires only 10 minterms in the first step and 6 minterms in th
e second step. Furthermore, our scheme uses only two variables for eac
h minterm. Therefore, the information to be stored is greatly reduced
and the system complexity is decreased. With a shared-content-addressa
ble memory (SCAM), it needs to store only one set of minterms independ
ent of the operand length, and consequently, the system size does not
increase with the increase of the operand digits. For optical implemen
tation, an incoherent correlator based SCAM processor unit can be used
to perform the two-step addition. The unit is very simple, easy to al
ign and implement, and insensitive to the environment. An experimental
result is given.