RFMD to Acquire Filtronic Compound Semiconducto...
GREENSBORO, North Carolina, December 20 /PRNewswire/ --
RF Micro Devices, Inc. (Nasdaq: RFMD), a global leader in the design and
manufacture of high-performance radio frequency systems and solutions, and
Filtronic PLC (LSE: FTC) today announced a definitive agreement pursuant to
which RFMD will acquire Filtronic Compound Semiconductors Ltd, a wholly owned
subsidiary of Filtronic PLC, for an acquisition price of approximately 12.5
million pounds in cash. The acquisition price includes the purchase of
Filtronic Compound Semiconductors' six-inch GaAs wafer fabrication facility
("fab") at Newton Aycliffe, United Kingdom, which is currently a major
supplier of GaAs pHEMT semiconductors to RFMD. The acquisition price also
includes the purchase of Filtronic Compound Semiconductors' millimeter wave
RF semiconductor business.
RFMD expects the addition of Filtronic Compound Semiconductors'
high-volume GaAs fab to significantly reduce RFMD's GaAs pHEMT sourcing costs
and provide additional capacity, thereby providing RFMD the opportunity to
capture incremental revenue that otherwise might be subject to capacity
constraints during calendar year 2008. Additionally, RFMD expects the
addition of Filtronic Compound Semiconductors' millimeter wave business to
strengthen the product portfolio of RFMD's recently formed Multi-Market
Products Group and be accretive to RFMD's target margin profile for its
multi-market business.
Bob Bruggeworth, president and chief executive officer of RFMD, said,
"The acquisition of Filtronic Compound Semiconductors is expected to
increase
our manufacturing volume, lower our overall cost structure and provide RFMD
with a high-volume supply of GaAs pHEMT, all of which support our aggressive
growth expectations for cellular front ends. In addition, we anticipate that
Filtronic Compound Semiconductors' strong millimeter wave business will add
profitable, high-margin revenue to our Multi-Market Products Group and enable
RFMD to further diversify into new growth markets that leverage our global
leadership in RF."
RFMD expects to complete the acquisition before the end of its fourth
fiscal quarter, ending in March 2008, subject to customary closing
conditions.
About RFMD: RF Micro Devices (NASDAQ GS: RFMD) is a global leader in the
design and manufacture of high-performance radio frequency systems and
solutions for applications that drive wireless and broadband communications.
RFMD's cellular front ends, cellular transceivers, RF components and
system-on-chip (SoC) solutions enable worldwide mobility, provide enhanced
connectivity and support advanced functionality in the cellular handset,
cellular base station, wireless local area network (WLAN), CATV networking,
aerospace, defense, and global positioning systems (GPS) markets. Recognized
for its diverse portfolio of state-of-the-art semiconductor technologies and
vast RF systems expertise, RFMD is a preferred supplier to the world's
leading mobile device and RF equipment manufacturers.
Headquartered in Greensboro, N.C., RFMD is an ISO 9001- and ISO 14001-
certified manufacturer with worldwide engineering, design, sales and service
facilities. RFMD is traded on the NASDAQ Global Select Market under the
symbol RFMD. For more information, please visit RFMD's web site at
www.rfmd.com.
This press release includes "forward-looking statements" within the
meaning of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements include, but are not
limited to, statements relating to the timing of the acquisition and
satisfaction of conditions to the acquisition, our plans, objectives,
representations and contentions and are not historical facts and typically
are identified by use of terms such as "may," "will," "should," "could,"
"expect," "plan," "anticipate," "believe," "estimate," "predict,"
"potential," "continue" and similar words, although some forward-looking
statements are expressed differently. You should be aware that the
forward-looking statements included herein represent management's current
judgment and expectations, but our actual results, events and performance
could differ materially from those expressed or implied by forward-looking
statements. We do not intend to update any of these forward-looking
statements or publicly announce the results of any revisions to these
forward-looking statements, other than as is required under the federal
securities laws. RF Micro Devices' business is subject to numerous risks and
uncertainties, including variability in quarterly operating results, the rate
of growth and development of wireless markets, risks associated with the
operation of our wafer fabrication facilities, molecular beam epitaxy
facility, assembly facility and test and tape and reel facilities, our
ability to complete acquisitions and integrate acquired companies, including
the risk that we may not realize expected synergies from our business
combinations, our ability to attract and retain skilled personnel and develop
leaders, variability in production yields, our ability to reduce costs and
improve gross margins by implementing innovative technologies, our ability to
bring new products to market, our ability to adjust production capacity in a
timely fashion in response to changes in demand for our products, dependence
on a limited number of customers, and dependence on third parties. These and
other risks and uncertainties, which are described in more detail in RF Micro
Devices' most recent Annual Report on Form 10-K and other reports filed with
the Securities and Exchange Commission, could cause actual results and
developments to be materially different from those expressed or implied by
any of these forward-looking statements.
RF MICRO DEVICES(R), RFMD(R) and PowerStar(R) are trademarks of RFMD,
LLC. All other trade names, trademarks and registered trademarks are the
property of their respective owners.
Web site: http://www.rfmd.com
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