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We present a new algorithm for decomposition of type f=g·h+r. The algorithm searches for Boolean products g·h of a special type, called cyclic chains. The number of cubes in a cyclic chain is no greater than the number of cubes in the part of the on-set of f covered by this chain. The number of literals is always smaller. Cyclic chains are extracted recursively until no more can be found. The presented algorithm is of particular interest in applications, which require circuit representations of a limited depth. Experimental results on benchmark circuits demonstrate the efficiency of our approach.