Tripath Expands Audio Amplifier Relationship With ST Microelectronics
Agreement Intended to Expand Market Opportunities and Consolidate Manufacturing Processes to Optimize Costs
SANTA CLARA, Calif., Dec. 18 /PRNewswire/ -- Tripath Technology Inc. (Nasdaq: TRPH - news), creators of Class-T(TM) digital audio amplifiers, announced today an expanded relationship with ST Microelectronics (ST) designed to consolidate manufacturing activities, broaden product portfolios and collaborate on developing advanced technology solutions. As a result of this cooperation, Tripath will be able to optimize production costs and streamline manufacturing operations. In addition, Tripath believes that this expanded relationship will help them achieve their 2002 objective to enhance revenue and expand market opportunities.
As an expansion of the companies' existing supply agreement, Tripath will begin to transition additional manufacturing activities to ST. Tripath believes this approach will simplify Tripath's supply chain for key products, and through consolidation at ST, will improve the product cost structure.
``Consolidating Tripath's digital audio amplifier manufacturing supply chain will substantially reduce our production costs, a significant savings that we believe will enhance our strong competitive position in the market,'' said Alan Soucy, Tripath's Vice President of Worldwide Sales and Applications. ``By initiating these manufacturing synergies, Tripath and ST will have the opportunity to broaden our business base in the near and long term.''
``We believe that we have established a valuable cooperation that compliments both ST and Tripath's goals to expand revenue and market opportunities,'' said Riccardo Ferrari, Audio Business Unit Director of ST Microelectronics. ``We are also pleased that we are able to assist Tripath in consolidating their manufacturing process.''
To better serve its customers, Tripath plans to market and sell selected complementary products from ST's product line, which will broaden its portfolio and enable Tripath to aggressively pursue new growth markets. For Tripath, this new arrangement will contribute to its revenue beginning in the first half of 2002.
Additionally, to further enhance the breadth of this relationship, the two companies have agreed to explore new technology solutions that leverage the significant process technology of ST and the unique advantages of Class-T technology for new audio products with high digital content.
Mr. Soucy concluded, ``As Tripath grows as a company we will continue to build a technology and product lead in this large and expanding market. We believe this renewed relationship with ST will assure our competitiveness. As a result, it allows Tripath to improve our manufacturing processes, reduce our costs, and expand our revenue and market opportunities. We are committed to our partnership with ST which will ultimately benefit Tripath, ST, our customers and our shareholders.'' |
