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8-K - FORM 8-K - SKYWORKS SOLUTIONS, INC. | a59581e8vk.htm |
Exhibit 99.1
Skyworks Media Relations:
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Skyworks Investor Relations: | |
Pilar Barrigas
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Stephen Ferranti | |
949-231-3061
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781-376-3056 |
Skyworks to Acquire Mobile Data
Connectivity Innovator SiGe Semiconductor
Connectivity Innovator SiGe Semiconductor
Accelerates Ascent to Wireless Networking Leadership; Immediately Accretive
WOBURN and ANDOVER, Mass. May 17, 2011 Skyworks Solutions, Inc. (NASDAQ: SWKS), an
innovator of high reliability analog and mixed signal semiconductors enabling a broad range of end
markets, today signed a definitive agreement to purchase SiGe Semiconductor, Inc., a leading global
supplier of radio frequency (RF) front-end solutions that are facilitating wireless multimedia
across a wide range of applications. The acquisition of SiGe, a fabless semiconductor provider,
complements Skyworks leadership in wide area front-end solutions by adding SiGes innovative short
range, silicon-based products. As a result, Skyworks will be able to offer customers a
comprehensive wireless networking product portfolio, supporting all key operating frequencies with
architectural flexibility to address a variety of high growth applications. Specifically, via this
transaction, Skyworks immediately expands its addressable content opportunity within several
strategic product areas including smart phones, tablets, gaming consoles, notebook PCs and home
automation systems.
Skyworks acquisition of SiGe Semiconductor underscores our commitment to capitalize on
ubiquitous wireless connectivity, said David J. Aldrich, president and chief executive officer of
Skyworks. To that end, this acquisition is highly complementary in terms of our addressed
markets, sales channels, process technologies, design methodologies and baseband partnerships. At
the same time, the SiGe business presents significant operational and cost synergies yielding
immediate earnings accretion and long-term shareholder value creation.
Skyworks clearly represents the best strategic and cultural fit for SiGe Semiconductor, said
Sohail Khan, president and chief executive officer of SiGe Semiconductor. Both companies have a long history of front-end innovation and a
-more-
SiGe Acquisition
shared vision of the future of
band-intensive wireless networking. Together, we can develop and deliver products of unprecedented
integration and improve our customers performance in the increasingly connected wireless world.
Skyworks will pay $210 million in cash, plus an additional $65 million if certain performance
targets are met over the next 12 months. The transaction has been approved by Skyworks and SiGes
boards of directors and is anticipated to close in June, subject to customary closing conditions,
including the receipt of domestic and foreign regulatory approvals. Excluding any non-recurring
acquisition related charges and amortization of acquired intangibles, Skyworks expects the
acquisition to be immediately accretive to non-GAAP earnings and will finalize estimates of the
transactions financial impact, as well as the accounting for the transaction, upon deal close.
SiGe Semiconductors diverse and comprehensive product portfolio provides the performance,
range and reliability required by 802.11b/g/a/n, Bluetooth®, WiMAX, GPS and ZigBee® Systems. The
companys innovative utilization of silicon-based semiconductor technologies simplifies the
integration of RF signal processing for many of todays leading consumer, commercial and industrial
electronics companies. Key SiGe customers include Cisco, Dell, Huawei, Hewlett-Packard, NetGear,
Itron, Microsoft, Nintendo, Samsung and Sony.
Skyworks Conference Call
Skyworks will be hosting a conference call on May 18 at 8:00 a.m. Eastern to discuss the
acquisition. To listen to the conference call via the Internet, please visit the investor
relations section of Skyworks Web site. To listen to the conference call via telephone, please
call 800-768-6544 (domestic) or 785-830-7990 (international), confirmation code: 9593511.
Playback of the conference call will begin at 11:00 a.m. Eastern time on May 18, and end at
11:00 a.m. Eastern time on May 25. The replay will be available on Skyworks Web site or by
calling 888-203-1112 (domestic) or 719-457-0820 (international), pass code: 9593511.
About SiGe Semiconductor
SiGe Semiconductor is a leading provider of highly integrated RF semiconductor front-end
solutions that enable wireless connectivity across a wide range of applications. Our innovative
solutions
SiGe Acquisition
integrate multiple RF functions into a single semiconductor device to deliver an optimal
combination of performance, power output and efficiency, and size. Our predominant use of standard
silicon based processes and fabless manufacturing model enables us to achieve high levels of
functional integration, leverage the economies of scale of high volume
manufacturing technology, maintain low costs and accelerate our time-to-market. We have
shipped more than 750 million front-end solutions since our inception, primarily consisting of
Wi-Fi front end modules and power amplifiers.
About Skyworks
Skyworks Solutions, Inc. is an innovator of high reliability analog and mixed signal
semiconductors. Leveraging core technologies, Skyworks offers diverse standard and custom linear
products supporting automotive, broadband, cellular infrastructure, energy management, industrial,
medical, military and mobile handset applications. The Companys portfolio includes amplifiers,
attenuators, detectors, diodes, directional couplers, front-end modules, hybrids, infrastructure RF
subsystems, mixers/demodulators, phase shifters, PLLs/synthesizers/VCOs, power dividers/combiners,
receivers, switches and technical ceramics.
Headquartered in Woburn, Mass., Skyworks is worldwide with engineering, manufacturing, sales
and service facilities throughout Asia, Europe and North America. For more information, please
visit Skyworks Web site at: www.skyworksinc.com.
Safe Harbor Statement
This news release includes forward-looking statements intended to qualify for the safe
harbor from liability established by the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include without limitation information relating to future results and
expectations of Skyworks (including without limitation certain projections and business trends).
Forward-looking statements can often be identified by words such as anticipates, expects,
forecasts, intends, believes, plans, may, will, or continue, and similar expressions
and variations or negatives of these words. All such statements are subject to certain risks,
uncertainties and other important factors that could cause actual results to differ materially and
adversely from those projected, and may affect our future operating results, financial position and
cash flows.
These risks, uncertainties and other important factors include, but are not limited to:
whether we are able to satisfy the closing conditions and close our acquisition of SiGe
Semiconductor; whether we are able to successfully integrate SiGe Semiconductors operations;
uncertainty regarding global economic and financial market conditions; the susceptibility of the
wireless semiconductor industry and the markets addressed by our, and our customers, products to
economic downturns; the timing, rescheduling or cancellation of significant customer orders and our
ability, as well as the ability of our customers, to manage inventory; losses or curtailments of
purchases or payments from key customers, or the timing of customer inventory adjustments; the
availability and pricing of third party semiconductor foundry, assembly and test capacity, raw
materials and supplier components; changes in laws, regulations and/or policies in the United
States that could adversely affect financial markets and our ability to raise capital; our ability
to develop, manufacture and market innovative products in a highly price competitive and rapidly
changing technological environment; economic, social and political conditions in the countries in
which we, our customers or our suppliers operate, including security and health risks, possible
disruptions in transportation networks and fluctuations in foreign currency exchange rates;
fluctuations in our manufacturing yields due to our complex and specialized manufacturing
processes; delays or disruptions in production due to equipment maintenance, repairs and/or
upgrades; our reliance on several key customers for a large percentage of our sales; fluctuations
in the manufacturing yields of our third party semiconductor foundries and other problems or delays
in the fabrication, assembly, testing or delivery of our products; our ability to timely and
accurately predict market requirements and evolving industry standards, and to identify
opportunities in new markets; uncertainties of litigation, including potential disputes over
intellectual property infringement and rights, as well as payments related to the licensing and/or
sale of such rights; our ability to rapidly develop new products and avoid product obsolescence;
our ability to retain, recruit and hire key executives, technical personnel and other employees in
the positions and numbers, with the experience and capabilities, and at the compensation levels
needed to implement our business and product plans; lengthy product development cycles that impact
the timing of new product
SiGe Acquisition
introductions; unfavorable changes in product mix; the quality of our
products and any remediation costs; shorter than expected product life cycles; problems or delays
that we may face in shifting our products to smaller geometry process technologies and in achieving higher levels of design integration; and our ability to
continue to grow and maintain an intellectual property portfolio and obtain needed licenses from
third parties, as well as other risks and uncertainties, including but not limited to those
detailed from time to time in our filings with the Securities and Exchange Commission.
These forward-looking statements are made only as of the date hereof, and we undertake no
obligation to update or revise the forward-looking statements, whether as a result of new
information, future events or otherwise.
Note to Editors: Skyworks and Skyworks Solutions are trademarks or registered trademarks of
Skyworks Solutions, Inc. or its subsidiaries in the United States and in other countries. All other
brands and names listed are trademarks of their respective companies.
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