Cirrus Logic And IBM Agree To Restructure MiCRUS Joint Venture; Cirrus Logic to reduce wafer fab obligations; IBM to assume full control of MiCRUS.FREMONT, Calif.--(BUSINESS WIRE)--June 21, 1999-- Cirrus Logic (company) Cirrus Logic - A manufacturer of integrated circuits including the Advanced RISC Machine and display interface processors and cards for use as Windows accelerators (requiring dedicated driver software). http://cirrus.com/. Inc. (Nasdaq:CRUS crus (krus) pl. cru´ra [L.] 1. leg (1). 2. a leglike part. crus ce´rebri ) today disclosed that it has signed an agreement with IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) to restructure their MiCRUS joint venture, a wafer fabrication facility based in East Fishkill, New York East Fishkill is a town in Dutchess County, New York, United States. The population was 25,589 at the 2000 census. The town name is derived from its formation from Fishkill, NY. The Town of East Fishkill is on the south border of the county. . Upon closing of this agreement, Cirrus Logic's capacity obligations in MiCRUS will be re-sized immediately to meet current business needs, and IBM will assume full control of the joint venture. Cirrus Logic's reduced capacity obligations will continue through December 31, 2000. "By eliminating the fixed manufacturing costs associated with our MiCRUS joint venture, we have successfully achieved a major milestone in building our new business model to operate more efficiently," said David D. French, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Cirrus Logic. "We now return to the fabless model which spurred Cirrus Logic's earlier growth, and in so doing, we are confident that both our capacity and advanced process technology needs will be met for the foreseeable future." Upon closing of this agreement, Cirrus Logic will take a one-time restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. in the current fiscal quarter, which ends June 26, 1999. The specific amount of this charge, along with the complete fiscal Q1 quarterly financial results, will be reported on July 21, 1999. Cirrus Logic is a premier supplier of high-performance analog circuits and advanced mixed-signal chip solutions. The company's products, sold under its own name and the Crystal product brand, enable system-level applications in mass storage, audio and precision data conversion. Additional information about Cirrus Logic is available at www.cirrus.com. |
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