Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Gary Ng who wrote (56015)	4/21/1999 11:39:00 PM
From: Ed Robichaud	Read Replies (1) \| Respond to of 1571405

Okay so I as off with the company Not Xilinx, Lattice buy Vantis... This is the final nail in the coffin for Lattice: Wednesday April 21 8:31 PM ET AMD Sells Vantis To Lattice For $500 Mln By Therese Poletti SAN FRANCISCO (Reuters) - Advanced Micro Devices Inc. (NYSE:AMD - news) said Wednesday that it sold its Vantis Corp. unit to fellow chip maker Lattice Semiconductor Corp. (Nasdaq:LSCC - news) for $500 million, a move that will strengthen AMD's balance sheet with some much-needed cash. AMD said the sale of the struggling Vantis, which develops programmable logic chips for communications and industrial applications, would enable it to focus on its core microprocessor business, where it competes head-on with the world's largest chip maker, Intel Corp. (Nasdaq:INTC - news) In early February, the head of Vantis, Richard Forte, stepped down abruptly, fueling talk that the unit was about to be sold. Last Friday, Hans Mosesmann, a Prudential Securities analyst, speculated that AMD would sell Vantis to Lattice, which also makes programmable logic devices. ''I don't think they are happy with the price but they are desperate for cash,'' Mosesmann said, referring to the deal announced Wednesday. ''If they are going to continue to compete with Intel in microprocessors, they are going to need a lot more cash.'' Sunnyvale, Calif.-based AMD has been set back in recent quarters by its own manufacturing problems and by Intel's aggressive price-cutting in the low-end of the chip market. Last week, AMD reported a first-quarter loss, citing production problems with its core K6 processor family. Lattice, in Hillsboro, Ore., said the deal would initially hurt earnings, but it should add to profit in calendar 2000. Lattice expects the deal to be completed before the end of its second fiscal quarter ending in September. Vantis will become a wholly owned subsidiary of Lattice. Based on the pro forma results of both companies, Lattice said its combined revenues for calendar 1998 would have been about $400 million. ''This is clearly a strategic move for Lattice,'' said Cyrus Tsui, Lattice president and chief executive officer, in a statement. ''We will become a stronger and more viable competitor and offer a broader range of programmable devices.'' The companies said the acquisition price of $500 million assumes Vantis' net cash and cash equivalents, which are expected to be about $60 million at closing. ''Lattice really needed it,'' Mosesmann said. ''It's good for Lattice and it gives them size to go and compete.''