Microsemi Sells Two Units
Thursday October 31, 7:37 pm ET
IRVINE, Calif.--(BUSINESS WIRE)--Oct. 31, 2002--Microsemi Corp. (Nasdaq:MSCC - News), today announced that over the last month it has divested two separate small operating units that did not fit into its current, more focused strategy.
The first was a medical ASIC design group, located in Carlsbad, Calif. and the second was Semcon Electronics Private Limited of Bombay, India, which was a wholly owned subsidiary.
The medical ASIC design group was developing a series of ASIC products for implantable and other medical products since it was formed three years ago. As of the date of sale, the group had 15 employees, and it had less than $0.5 million in revenues in fiscal year 2002.
Microsemi elected to divest the group in order to reassign their research and development funding to nearer-term product opportunities in markets where Microsemi already has an established product portfolio and significant momentum. Microsemi anticipates that it will record a non-recurring charge of approximately $0.6 million in its fourth quarter associated with this divestiture.
Semcon is an assembly labor operation that was operating in Bombay. It was a wholly owned subsidiary of Microsemi since 1982. The decision to sell Semcon was based on its diminished business, uncertain business prospects and difficulties with regard to communications and control of the operation.
Semcon, which had 500 employees at the beginning of fiscal year 2001, contributed approximately $0.4 million in revenues and $0.1 million in earnings to Microsemi's consolidated results for the nine months ended June 30, 2002. Microsemi anticipates that it will record a non-recurring charge of approximately $2 million in its fourth quarter ended Sept. 29, 2002 in connection with Semcon.
About Microsemi
Microsemi is a leading designer, manufacturer and marketer of analog, mixed-signal and discrete semiconductors. The company's semiconductors manage and control or regulate power, protect against transient voltage spikes and transmit, receive and amplify signals.
Microsemi's products include individual components as well as complete circuit solutions that enhance customer designs by improving reliability, battery optimization, reducing size or protecting circuits. Markets the company serves include mobile connectivity, computer/peripherals, telecom/datacom, medical, industrial, automotive, digital media, space/satellite and military.
More information may be obtained by contacting the company directly or by visiting its Web site at microsemi.com.
The following factors can materially affect Microsemi's future results:
"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, the 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 potential inability to realize cost savings or productivity gains and to improve capacity utilization, potential cost increases, weakness or competitive pricing environment of the marketplace, uncertain demand for and acceptance of the company's products, results of in-process or planned development or 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, unexpected business and economic conditions or adverse changes in current or expected industry conditions, business disruptions, future effects of the tragic events of September 11, earthquake risks, variations in customer order preferences, fluctuations in market prices of the company's common stock and potential unavailability of additional capital on favorable terms, inadequacies of any existing insurance coverage, difficulties in implementing company strategies, dealing with environmental matters or litigation, difficulties protecting patents and other proprietary rights, and 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 and all of the risks identified in the Form 10-Q filed on Aug. 12, 2002, each filed by Microsemi with the Securities and Exchange Commission and all of the risks identified in each subsequent report filed by Microsemi with the SEC. Microsemi does not undertake to supplement or correct any information in this release that is or becomes incorrect.
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Contact:
Microsemi Corp., Irvine
David R. Sonksen (financial), 949/221-7101
or
Cliff Silver (editorial), 949/221-7112
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Source: Microsemi Corp. |
