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Scion Photonics Acquires Optical Systems Corporation to Accelerate Entry Into Automated High Volume
Fiber Optics Manufacturing
Scion Photonics Acquires Optical Systems Corporation to Accelerate Entry
Into Automated High Volume Fiber Optics Manufacturing
FREMONT, Calif., Jan 9, 2001 /PRNewswire via COMTEX/ -- Read-Rite Corporation
(Nasdaq: RDRT) today announced that their optical component subsidiary, Scion
Photonics, Inc., has acquired Optical Systems Corporation (OSC) for an
undisclosed sum. OSC, based in Valencia, California, is a maker of precision
automated tooling for the fiber optics component manufacturing industry. All OSC
employees will be joining Scion and will continue to work out of the Valencia,
California facility.
Dr. Venkatesan Murali, Scion's chief operating officer, said "this acquisition
clearly accelerates Scion's roadmap for the delivery of quality optical products
in high volume to our customers. In addition, it also gives Scion a tremendous
advantage, especially in the contract manufacturing space, of quickly and
seamlessly integrating customized automation tooling into our precision assembly
processes." Bill McBain, formerly OSC's chief executive officer and now vice
president of Scion's Assembly Automation and Contract Manufacturing Division,
added that "the skill sets of OSC and Scion are very complimentary. From an
automation standpoint, the opportunity to participate in the architecture of
optical component designs will enable Scion to implement design-for-automation
concepts very early in the product design cycle. This will greatly enhance
Scion's ability to rapidly drive productivity and yield improvements."
As part of Scion Photonics, this new division will continue to sell automation
tooling to other optical component manufacturers. Added Dr. Murali, "we expect
this acquisition will favorably impact Scion's revenue growth during the coming
year -- both in terms of third party equipment sales and by accelerating Scion's
own high volume production of its products."
Read-Rite Corporation is one of the world's leading independent manufacturers of
magnetic recording heads, head gimbal assemblies (HGAs) and head stack
assemblies (HSAs) for disk drives and tape drives. The company is headquartered
in Fremont, California and has operations in California, Thailand, the
Philippines, Japan, Singapore and South Korea. The company's website is located
at readrite.com. Read-Rite is the majority shareholder of Scion
Photonics, Inc., a manufacturer of custom and standard Dense Wavelength Division
Multiplexers (DWDM) and other optical communication components. Scion's website
is located at scionphotonics.com.
This news release contains statements which include forward-looking information
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Act of 1934, as amended, and is subject to the
"safe harbor" created by those sections. The company's actual results for future
periods could differ materially from those projected in such forward-looking
information. Factors that could cause actual results to differ include, but are
not limited to, the risks surrounding: the successful integration of OSC's
products into Scion's assembly processes; Scion's ability to quickly and
successfully develop, design, manufacture, ramp production and sustain volume
production cost-effectively of its optical products; Scion's ability to achieve
anticipated acquisition related operational efficiencies; Scion's ability to
effectively manage and distribute OSC products and compete in the highly
competitive and rapidly changing marketplace; and the other factors described in
the company's reports filed with the Securities and Exchange Commission,
including, but not limited to, its Annual Report on Form 10-K for fiscal 2000.
Read-Rite undertakes no obligation to update forward-looking statements to
reflect events or circumstances occurring after the date of such statements.
SOURCE Read-Rite Corporation
CONTACT: investors, Mark Sokolowski, 510-683-7676, or media, John
DiMatteo, 510-683-7379, both of Read-Rite Corporation
URL: scionphotonics.com
readrite.com
prnewswire.com
(C) 2001 PR Newswire. All rights reserved.
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KEYWORD: California
INDUSTRY KEYWORD: CPR
SUBJECT CODE: TNM
STOCK SYMBOLS: [(rdrt)] |
