Microsemi RF Products Completes Previously Announced Sale to Advanced Power Technology Inc. of Low-Frequency RF Bipolar Transistor Business
-- Sale Should Improve Gross Margins -- Transaction Provides Microsemi $12.2 Million in Cash
Microsemi Corp. (Nasdaq:MSCC - News), a leading manufacturer of power management integrated circuits and discrete semiconductors, today announced that Microsemi RF Products Inc., its wholly owned subsidiary, has sold for $12.2 million in cash its product lines, which consisted of low frequency RF bipolar transistors, and certain assets, to a subsidiary of Advanced Power Technology Inc. (Nasdaq:APTI - News), based in Bend, Ore.
The transaction complements Microsemi's consolidation initiatives. Microsemi believes that the completed sale should have a positive effect, of as much as 50 basis points, on Microsemi's overall gross margins after May 24, 2002, the effective date of the sale.
The assets sold by Microsemi RF Products include its 20,000 square-foot facility in Montgomeryville, Pa. housing a wafer fab and all of its manufacturing operations.
The sale by Microsemi RF Products, which contributed revenues of approximately $10 million in the last fiscal year and was running at a rate approximately 10% below that in this fiscal year, will impact Microsemi's revenues but is not believed to impact Microsemi's net profits.
About Microsemi
Microsemi is a leading designer, manufacturer and marketer of analog, mixed-signal and discrete semiconductors. The company's semiconductors manage and regulate power, protect against transient voltage spikes and transmit, receive and amplify signals.
Microsemi products include individual components as well as complete circuit solutions that enhance customer designs by providing battery optimization, reducing size or protecting circuits. Markets the company serves include mobile connectivity, computer/peripherals, telecommunications, medical, industrial/commercial, space/satellite and military.
More information may be obtained by contacting the company directly or by visiting its Web site at microsemi.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Any statements set forth in the news release that are not entirely historical and factual in nature are forward-looking statements. For instance, all statements of belief and expectations are forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Potential risks and uncertainties include, but are not limited to, such factors as the difficulties regarding the making of estimates and projections, hiring and retention of qualified technical personnel in a competitive labor market, acquiring and integrating new operations or assets, closing or disposing of operations or assets, rapidly changing technology and product obsolescence, the ability to realize cost savings or productivity gains, the ability to improve capacity utilization, potential cost increases, the strength and competitive pricing environment of the marketplace, demand for and acceptance of the company's products, the results of in-process or planned development, marketing and promotional campaigns, changes in demand for products, difficulties foreseeing future demand, effects of limited visibility of future sales, potential non-realization of expected orders or non-realization of backlog, business and economic conditions or adverse changes in current or expected industry conditions, business disruptions, future effects of the tragic events of Sept. 11, customer order preferences, fluctuations in market prices of the company's common stock and availability of additional capital on favorable terms, difficulties in implementing company strategies, environmental matters, litigation, difficulties protecting patents and other proprietary rights, inventory obsolescence. In addition to these factors and any other factors mentioned elsewhere in this news release, the reader should refer as well to the factors, uncertainties or risks identified in the company's most recent Form 10-K filed on Dec. 24, 2001, the Form 10-Q filed on Feb. 13, 2002 and May 10, 2002, and the final prospectus on Form S-3 filed on June 1, 2000, each filed by the company with the Securities and Exchange Commission. The company does not undertake to supplement or correct any information in this release that is or becomes incorrect.
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Contact:
Microsemi Corp.
David R. Sonksen (financial), 949/221-7101
or
Cliff Silver (editorial), 949/221-7112 |
