Does anyone know what type of I/O devices we're talking about here? This stock made a nice move today on strong volume - however - I don't know a damn thing about it.
HAUPPAUGE, N.Y.--(BUSINESS WIRE)--March 19, 1997--Standard
Microsystems Corporation (NASDAQ: SMSC) announced today that Intel
Corporation of Santa Clara, California (NASDAQ:INTC) has entered into
agreements with Standard Microsystems, a supplier of leading-edge
input/output semiconductor integrated circuits. Intel will also make
an equity investment in Standard Microsystems. Under the terms of
agreements recently signed by the companies, Intel and Standard
Microsystems will work cooperatively on the integration of new
semiconductor input/output (I/O) integrated circuits, which have been
specifically designed to work with Intel's latest microprocessors and
core logic chip sets, into selected Intel personal computer
motherboard designs through the end of 1997. The two companies have
also agreed to cooperate on a family of proprietary low-pin-count
I/O devices for future applications.
Standard Microsystems expects to supply these I/O integrated circuit
components to customers around the world, including Intel's own
personal computer motherboard division, Intel's motherboard licensees
and major personal computer manufacturers. As a result, Standard
Microsystems anticipates that the total amount of business that it
will do with Intel and Intel's licensees should increase.
Under the agreements, Intel will purchase just under a 10 % interest
in Standard Microsystems Corporation, buying approximately 1,540,000
shares of Standard Microsystems' common stock directly from the
Company at a price of $9.50 per share. Intel will also receive
warrants to purchase an additional 10 % interest in Standard
Microsystems and certain anti-dilutive rights.
Speaking for Standard Microsystems Corporation, Mr. Paul Richman,
the Company's Chairman of the Board and Chief Executive Officer,
indicated that "Over the past few years, despite intense competition,
Standard Microsystems has become one of the leading architects and
suppliers of input/output circuits to the worldwide personal computer
industry. We have always had a very good relationship with Intel, a
company that I personally have an enormous amount of respect for, and
this new cooperative effort with them should help us considerably in
our efforts to establish Standard Microsystems' advanced input/output
devices as worldwide industry standards. We look forward to working
more closely with Intel in this and other areas over the years
ahead." |
