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To: Stoctrash who wrote (28564)	1/23/1998 11:27:00 AM
From: BillyG	Respond to of 50808

OAKT divestiture................ techweb.cmp.com A service of Semiconductor Business News, CMP Media Inc. Story posted at 7 p.m. EST/4 p.m. PST, 1/22/98 Oak Technology to divest graphics, audio chip business SUNNYVALE, Calif.--Oak Technology Inc. here today said it will sell off its PC graphics and audio chip business and focus all of its efforts on three core market segments: optical storage, consumer electronics and digital office equipment. "The audio and graphics semiconductor markets are highly competitive and we believe they offer limited opportunities for Oak," said David D. Tsang, chairman and chief executive officer of the 10-year-old company. "We also believe that there is value in what we have developed and that for the right company, acquiring these businesses can offer a tremendous head start." The PC graphics and audio markets represented about 5% of Oak's $49.4 million in revenues during the quarter, ended Dec. 31. Oak reported today that its net come fell sharply in that quarter to $7.6 million compared to $13.2 million in the same period a year ago when its sales totaled $47.6 million. The company also named Richard Black, a board member, as its new president. Tsang, who held that position, will continue as chairman and CEO. The optical storage business continued to account for the largest portion of Oak's sales in the recent quarter, representing 80% of the revenues. Oak said it now anticipates a loss in the current quarter because of cost pressures in its chip markets, the growth of sub-$1,000 PCs requiring lower priced ICs, and the Asian financial crisis.