Dii Group Sells Semiconductor Wafer Fabrication Facility;
Restructured Semiconductor Company Expected to Contribute in 1999
Guess who bought it? That's right SUPX!
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The complete story below.
Happily Long SUPX,
Duke
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Tuesday January 19, 7:31 am Eastern Time
Company Press Release
SOURCE: The Dii Group
Dii Group Sells Semiconductor Wafer Fabrication Facility;
Restructured Semiconductor Company Expected to Contribute in 1999
NIWOT, Colo., Jan. 19 /PRNewswire/ -- The Dii Group (Nasdaq: DIIG - news), a leading global electronics design and
manufacturing service provider, today announced that Orbit Semiconductor, Inc., its wholly owned subsidiary, has signed a
definitive agreement to sell its wafer fabrication facility to Supertex, Inc. (Nasdaq: SUPX - news), a Sunnyvale, Calif.,
mixed-signal semiconductor manufacturer. As part of the transaction, Supertex has guaranteed Orbit a multi-year supply of
wafers that utilize the specialized processes run in the facility. The closing of this transaction, which is expected to be
completed later this month, is subject to customary closing conditions.
Ronald R. Budacz, chairman and CEO of the Dii Group, commented, ''We're delighted that we are successfully divesting of
this manufacturing facility in a way that ensures Orbit will have a steady supply of semiconductor chips for its customers, and
provides ongoing employment for the workers in the facility. We fully expect Orbit, as restructured, to be a positive earnings
contributor to the Dii Group in 1999, and to continue providing our customers the technical know-how to cost-reduce
electronics products through the superior use of silicon.''
Budacz continued, ''Although we have not finalized the accounting for this transaction, at this point we expect that the sale
will result in about a $13-$14 million after-tax, nonrecurring, noncash charge in the fourth quarter. We anticipate the deal
will be cash positive -- contributing approximately $5 million.''
Ronald R. Snyder, President of Orbit Semiconductor, added, ''In addition to our continued supply of wafers from Supertex,
we have recently reconfirmed our long-term supply agreements with all of our wafer foundry partners. We are well
positioned to provide our customers a broad range of digital, analog and mixed-signal ASIC (application-specific integrated
circuit) design and manufacturing services.''
Dr. Henry C. Pao, President and CEO of Supertex, stated, ''We have been looking to build or acquire a cost-effective,
six-inch wafer fab facility for a long time. We are delighted that we have finally found one, which is located in our vicinity,
with synergistic value both financially and in terms of processes, products, and customers. The existing technologies in the
Orbit fab and its foundry customers, now including Orbit, complement our targeted markets. Combining with our own
business, we expect to be able to gain economy of scale quickly.''
The Dii Group plans to disclose more financial information about this transaction in its fiscal 1998 earnings release, which
is scheduled for January 28, 1999.
This press release contains historical information and forward-looking statements. Statements looking forward in time
involve risks and uncertainties, including risks associated with customer concentration, dependence on the electronics
industry, especially the semiconductor business sector, economic conditions, the successful integration of newly acquired
businesses and other risks associated with acquisitions, changes in product mix, competition, and international operations.
For further information, reference should be made to the Dii Group's filings with the Securities and Exchange Commission,
including the Company's ''Management's Discussion and Analysis of Financial Condition and Results of Operations''
included in the Company's most recent Annual Report on Form 10-K.
Supertex, Inc. (Nasdaq: SUPX - news), is a leading high-voltage, mixed-signal semiconductor manufacturer focused on
high-voltage interface products for use in telecommunications, imaging and medical electronics markets. Its Internet Website
can be reached by accessing www.supertex.com to view its recent press releases, company profile, its products and
services, and its financial data.
The Dii Group, Inc. (Nasdaq: DIIG - news) is a leading, value-added, global electronics design and manufacturing outsource
service provider, which operates through a global network of companies in North America, Europe and Asia. The Company
serves the electronics industry through its four core competencies: semiconductors; printed circuit boards; circuit board and
finished product assembly and distribution, and process control technologies. The Dii Group employs approximately 7,000
people and had revenues of $663 million in the first nine months of fiscal 1998. Its Internet (Web) Site can be reached by
accessing www.diigroup.com to view recent press releases, company information, and financial data relating to the Dii
Group.
For financial information via fax, please call 201-333-3662.
SOURCE: The Dii Group |
