G'day all - Free at last! Free at last! At worst, maybe another Q or 2 of dirty linen tossing, but the books will be fairly clean subsequently, w/o the fabs to put a superdrag on earnings
biz.yahoo.com
[full text below]
Tuesday June 29, 8:21 am Eastern Time
Company Press Release
Cirrus Logic Transfers Cirent Semiconductor
Ownership to Lucent Technologies
Cirrus Logic to Cut Manufacturing Costs; Lucent to Assume Full
Control of Joint Venture Wafer Fab
FREMONT, Calif.--(BUSINESS WIRE)--June 29, 1999-- Cirrus Logic Inc. (Nasdaq:CRUS - news) announced it has signed an agreement with Lucent Technologies (NYSE:LU - news), wherein Lucent has agreed to undertake full ownership and operational control of Cirent Semiconductor, their joint venture wafer fabrication plant in Orlando, Fla.
Under terms of the agreement, Cirrus Logic has reduced its capacity obligations commensurate with future business needs, and Cirent will supply wafers to Cirrus Logic through Dec. 31, 2000. After this date, future supply agreements will be separately negotiated. The agreement is subject to regulatory approval under the Hart-Scott-Rodino Act and other perfunctory procedural matters.
The Lucent agreement follows a similar accord that Cirrus Logic reached with IBM last week, wherein IBM assumes full control of the MiCRUS joint venture in East Fishkill, N.Y. Cirrus Logic plans to record a charge to earnings in fiscal Q1, which ended on June 26, 1999. The company expects to detail the financial impact of its joint venture agreements on or before it reports fiscal Q1 financial results, July 21, 1999.
''With these agreements, we have successfully achieved our goal to reduce manufacturing costs going forward,'' said David D. French, president and CEO of Cirrus Logic. ''As we now return to the fabless model, we're confident that we will be able to satisfy our customers' capacity and advanced process technology needs for the foreseeable future.''
best, Bosco |
