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Technology Stocks : ADI: The SHARCs are circling! -- Ignore unavailable to you. Want to Upgrade?

To: BostonView who wrote (870)	3/24/1998 4:51:00 PM
From: Meghan Richards	Read Replies (1) \| Respond to of 2882

Analog Devices to Sell Read Channel ASIC Technology to Adaptec NORWOOD, Mass., and MILPITAS, Calif., March 24 /PRNewswire/ -- Analog Devices, Inc. (NYSE: ADI - news) and Adaptec, Inc. (Nasdaq: ADPT - news) today announced that Analog Devices will sell its read channel ASIC technology to Adaptec. The agreement calls for an initial cash payment of $34 million, to be followed by subsequent payments totaling $6 million for research and development services during a transition period, and up to $20 million in royalties based on sales by Adaptec of products incorporating the acquired ADI technology. Grant Saviers, Chairman, CEO and President of Adaptec, said, ''This purchase provides a strong foundation for our future. Mass information storage is becoming an increasingly important element in today's information technology strategies. Acquisition of ADI's top-quality, mixed-signal, read channel technology will sustain Adaptec's leadership position as the industry moves to integrate more ASICs yielding smaller, higher performance storage devices.'' Jerald G. Fishman, President and Chief Executive Officer of Analog Devices, said, ''Adaptec's offer to buy our read channel technology is a strong endorsement of ADI's engineering excellence. It also fits in with our strategic decision to concentrate on other areas of our business, specifically analog ICs and DSP products. As a result of this agreement, ADI is rewarded for its technical innovation in this area and Adaptec is in a better position to sustain its technical leadership in the mass storage arena.'' Adaptec will account for this acquisition under the purchase method of accounting. Adaptec will evaluate the allocation of the purchase price to the assets acquired, which may include in-process technology that will be written off, and goodwill, which will be amortized over the benefit period. About Adaptec Adaptec provides bandwidth management technologies for organizations building the global information infrastructure. Its high-performance I/O, connectivity and network products are incorporated into the systems and products of major computer and peripheral manufacturers. Founded in 1981 and headquartered in Milpitas, CA, Adaptec employs 3,500 people worldwide in design, manufacturing, sales, service and distribution. Adaptec's home page is adaptec.com. About Analog Devices With fiscal 1997 sales of $1.24 billion, Analog Devices is a leading manufacturer of precision high-performance integrated circuits used in analog and digital signal processing applications. Headquartered in Norwood, Massachusetts, the company employs approximately 7,800 people worldwide and has manufacturing facilities in Massachusetts, California, North Carolina, Ireland, the Philippines and Taiwan. Analog Devices' home page is analog.com. Safe harbor statement under the Private Securities Litigation Reform Act of 1995: Forward-looking statements in this news release involve risk and uncertainty. Important factors, including overall economic conditions, demand for semiconductors generally, demand for the companies' products, the occurrence of another inventory and lead-time reduction cycle, raw material availability (especially raw silicon wafers), availability of manufacturing capacity, technological and product development risks, competitors' actions, further adverse developments in Southeast Asia and other risk factors described in the Companies' most recent annual reports and form 10-Ks filed with the Securities and Exchange Commission could cause actual results to differ materially. SOURCE: Analog Devices, Inc.