Thursday November 6 8:00 AM EST
Company Press Release
ISSI to Acquire Flash R&D Company
Signs Flash License Agreements with Rockwell and Chartered
SANTA CLARA, Calif., Nov. 6 /PRNewswire/ -- Integrated Silicon Solution, Inc. (Nasdaq:ISSI)
today announced that it has entered into an agreement to acquire Nexcom Technology, Inc., a
Flash development company in Sunnyvale, Calif.
Nexcom, a seven-year-old private company, has developed several important patents in
EEPROM/Flash memory cell and design technology and has a total of thirteen patents now issued.
Their development has focused on low power, low voltage, high-speed, high-density Flash memory
for both stand-alone and embedded memory applications using innovative process and design
techniques. ISSI will acquire 100 percent of Nexcom in exchange for 772,710 shares of ISSI
Common Stock and $500,000 in cash. The Nexcom shareholders are also eligible to receive certain
contingent payments based on future license revenue. The transaction will be accounted for as a
purchase and is expected to result in a charge of $7 to $8 million in ISSI's December 31, 1997
quarter. The acquisition is subject to approval by Nexcom's shareholders and is expected to be
completed in the next several weeks.
''This is a strategic step for ISSI and gives us a strong position in Flash intellectual
property,'' said Jimmy Lee, president and CEO. ''We now have the foundation to implement our
intellectual property licensing strategy with major companies as well as to build mainstream
Flash products for the high growth telecom/wireless, networking and microcontroller markets.''
ISSI also announced today two intellectual property licensing agreements for embedded
applications which will bring Flash licensing revenue to ISSI. In an agreement with Rockwell,
ISSI has co-developed a 0.35 micron Flash process and has licensed Flash memory blocks in
exchange for license/development fees and royalties. ISSI's Flash will be embedded in certain
Rockwell logic products.
ISSI also announced a Flash licensing and development agreement with Chartered Semiconductor
Manufacturing, Ltd. (CSM) of Singapore. CSM is one of the leading foundry-only wafer
manufacturers in the world. CSM and ISSI have had a foundry relationship in SRAM and Flash
since 1994. Under the terms of the licensing agreement, in exchange for license/development
fees and royalties, ISSI will co-develop with CSM a 0.35 micron Flash memory process. In
addition, ISSI will develop Flash memory blocks for CSM's design library, which will then be
made available for their customers' embedded Flash devices.
''With the acquisition of Nexcom and these partnerships, ISSI is positioned to benefit
internally from our own Flash memory business and generate significant revenue from our
embedded Flash intellectual property licensing strategy,'' said Jimmy Lee.
ISSI designs, develops and markets high performance SRAM, DRAM, FLASH, EPROM and EEPROM memory
devices as well as embedded memory devices, including DSP support products, microcontrollers
and voice products. ISSI's products are used in telecommunications, data communications,
networking systems, personal computers, instrumentation and consumer products.
This news release contains forward-looking statements that are subject to risks and
uncertainties that could cause volatility in the company's business, operating results or
financial condition. Actual results may differ from current expectations due to development
delays in design or process technology, poor manufacturing yields, lower than expected product
sales by the licensees, changes in industry conditions, changes in average selling prices for
the company's technology and intellectual property, imbalances between supply and demand, the
level of market acceptance of the company's products, competition, the cancellation,
modification or delay of orders from customers, the ability of the company to successfully
integrate Nexcom's operations and retain key Nexcom employees or other factors. Further
information that could affect the company's results is detailed in ISSI's periodic filings with
the Securities and Exchange Commission, including its Annual Report on Form 10K for the fiscal
year ended Sept. 30, 1996 and its Quarterly Report on Form 10Q for the quarter ended June 30,
1997.
SOURCE Integrated Silicon Solution, Inc. |
