Is this positive or negitive for DIIG? Can anybody comment on this.
COMPANY NEWS & RESEARCH
Return to Company Headlines
Dii Group Sells Semiconductor Wafer Fabrication Facility; Restructured Semiconductor Company Expected to Contribute in 1999
PR Newswire, Tuesday, January 19, 1999 at 07:50
NIWOT, Colo., Jan. 19 /PRNewswire/ -- The Dii Group (NASDAQ:DIIG), 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), 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), 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) 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
-0- 01/19/99
/CONTACT: Sharon L. Sweet, Vice President, Investor Relations of The Dii
Group, 303-652-2221/
/Web site: supertex.com
/Web site: diigroup.com
Companies or Securities discussed in this article:
Symbol Name
NASDAQ:DIIG Dii Group Inc
NASDAQ:SUPX Supertex Inc
Return to Company Headlines
Select news or report:
Company News
S&P Company Report
First Call Earnings
Vickers Insider Trading
S&P Industry Report
To receive headlines or reports, enter a symbol in the box below or search for a symbol.
|
