Cirrus Logic to Acquire LuxSonor Semiconductors Inc.; Strengthens Position as World-Class Provider of Total DVD Solutions.Business Editors and High-Tech Writers
AUSTIN, Texas--(BUSINESS WIRE)--July 19, 2001
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.]
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crus ce´rebri ), the premier supplier of high-performance analog and DSP (1) (Digital Signal Processor) A special-purpose CPU used for digital signal processing applications (see definition #2 below). It provides ultra-fast instruction sequences, such as shift and add, and multiply and add, which are commonly used in math-intensive chip solutions for consumer entertainment electronics, today announced it signed a definitive agreement to acquire Fremont, California-based LuxSonor Semiconductors Inc., a leading supplier of DVD DVD: see digital versatile disc.
in full digital video disc or digital versatile disc
Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. video processors and audio/video semiconductor solutions.
This acquisition strengthens Cirrus Logic's position to provide Total Entertainment(tm) solutions for next-generation, Internet-ready DVD players and networked entertainment systems. In fact, Cirrus Logic is the only company that provides the front-end DVD optical controller, back-end video processor and next-generation TrueDigital(tm) Class D power amplifiers.
Cirrus Logic will pay an estimated $65 million for LuxSonor in this stock-for-stock transaction. The acquisition has been approved by the boards of directors of both companies and is expected to close in August following customary regulatory approvals. Based on Cirrus Logic's current forecasts, it is anticipated to be accretive to pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts.
The phrase pro forma EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. by the end of this fiscal year.
"This acquisition strengthens our strategic focus on consumer entertainment electronics by expanding our total DVD technology and product portfolio, while significantly extending our reach in Asia and China," said David D. French, president and chief executive officer of Cirrus Logic.
According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. the Consumer Electronics Association, about 14 million DVD players have been sold in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , versus an installed base of roughly 150 million video tape recorders (VCRs). Assuming the remaining homes will upgrade or replace their VCRs within the next 5 to 10 years at an average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. of $150, this represents a market opportunity valued at $20 billion, according to the Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. . Already the fastest-growing consumer electronics product in history, the compound annual growth rate for DVD players in the past three years has been 190 percent.
"This combination of people and technologies creates a very compelling business proposition as our customers are seeking established vendors that can provide complete entertainment solutions," said Harold Liang, co-founder, chairman and chief executive officer of LuxSonor.
With branch offices in Taiwan, Hong Kong and Shenzhen, China, LuxSonor is a five-year-old, privately held, fabless semiconductor company A fabless semiconductor company specializes in the design and sale of hardware devices implemented on semiconductor chips. It achieves an advantage by outsourcing the fabrication of the devices to a specialized semiconductor manufacturer called a semiconductor foundry or "fab. with about 100 employees. Cirrus Logic acquired a limited license to some of LuxSonor's DVD decoder technology in November 2000. LuxSonor's intellectual products include state-of-the-art RISC processors, digital signal processors, and video and audio compression and decompression technology. Its single-chip solutions are compliant with such global standards as MPEG-1, MPEG-2, AC-3, Dolby Digital and other related standards. Its current product lines include integrated circuits (ICs) for CD-based MP3/WMA decoding, VideoCD, Super VideoCD, DVD, and ICs for Internet appliance products such as Internet set-top boxes, Internet TVs and Internet-enabled DVD players (iDVD). LuxSonor will become an operating unit operating unit
A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon within the Crystal product division of Cirrus Logic.
About Cirrus Logic
Cirrus Logic is the premier supplier of high-performance analog and DSP chip solutions for consumer entertainment electronics that allow people to see, hear, connect and enjoy digital entertainment. Building on its global market share leadership in audio integrated circuits and its rich mixed-signal patent portfolio, the company targets mainstream audio, video and Internet entertainment applications in the consumer entertainment market. Cirrus Logic operates from headquarters in Austin, Texas, and major sites located in Fremont, California and Broomfield, Colorado, as well as offices in Europe, Japan and Asia. More information about Cirrus Logic is available at www.cirrus.com.
LuxSonor is a fabless semiconductor company that provides leading-edge, IC-based, multimedia solutions to global manufacturers in the consumer and computer marketplace. LuxSonor is a privately held company privately held company
A firm whose shares are held within a relatively small circle of owners and are not traded publicly. with approximately 100 employees. Head offices are in Fremont, California, with branch offices in Taiwan, Hong Kong and Shenzhen, China. More information is available at www.luxsonor.com.
Except for historical information contained herein, the matters set forth in this news release are forward-looking statements that are dependent on certain risks and uncertainties including such factors, among others, as the ability of the Company to successfully integrate LuxSonor into its operations; the ability of the Company to realize synergies anticipated as a result of the LuxSonor acquisition; overall conditions in the semiconductor market; the rate of consumer electronics market adoption of new products; customer cancellations of orders, or the failure to place orders consistent with forecasts; hardware or software deficiencies; delays in customer qualification of key new products; final determination of appropriate inventory write-downs based on the outlook at the end of each quarter; actual operational spending; and the risk factors listed in the company's Form 10-K Form 10-K
A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information.
See 10-K. for the year ended March 31, 2001, and in other filings with the Securities and Exchange Commission. The foregoing information concerning Cirrus Logic's business outlook represents our outlook as of the date of this news release, and Cirrus Logic undertakes no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.