Alliance Semiconductor sees $31.2 mln pre-tax gain
SANTA CLARA, Calif., Oct 4 (Reuters) - Computer chipmaker Alliance Semiconductor Corp. (NasdaqNM:ALSC - news) on Thursday said it will report a $31.2 million pre-tax gain in its fiscal third quarter, ended Sept. 30, related to the sale of a company in which it had invested.
The maker of memory chips said it received $35.7 million in cash and stock from Adaptec Inc. (NasdaqNM:ADPT - news), as part of that company's acquisition of Platys Communication Inc. Adaptec makes products that speed computer interfaces, while Platys develops high-speed network products for manufacturers.
Alliance owned a 23.2 percent stake in Platys, and received half of its payment in cash and half in Adaptec common stock. Ten percent of the cash will be held in escrow for one year by Adaptec, as an assurance of warranties made by Platys.
One-third of the Adaptec stock received by the company is freely tradable, another third becomes tradable after 90 days, and the final third becomes tradable after 180 days.
Alliance Semiconductor stock rose 14 cents, or 2 percent, to $6.99 in early Nasdaq trading. Adaptec fell 7 cents to $8.51 on Nasdaq
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