SAN JOSE, Calif., July 25, 2006 — IDT™ (Integrated Device Technology, Inc.; NASDAQ: IDTI), a vital semiconductor solutions supplier, today announced that it has reached agreement with SigmaTel, Inc. to purchase the SigmaTel AC-97 and High Definition Audio (HD-Audio) PC and Notebook audio codec product lines. Based on the terms of the transaction, IDT will acquire both product lines and related software for a one-time fee of $72 million in cash. In addition, IDT will also acquire the SigmaTel intellectual property and employee teams necessary to execute on the existing roadmap for continued PC and notebook audio leadership and success. The transaction, which has already received regulatory and related approvals, is anticipated to close by the end of July.
IDT currently plans to operate the PC Audio Operation as an independent business unit primarily located in
“We believe the PC Audio market is undergoing an important evolution with expanding media usage models as part of Microsoft’s
Pursuant to the asset purchase agreement, IDT will acquire the SigmaTel PC and Notebook audio codec product lines including the design, marketing, manufacturing rights, and software for both existing and roadmap products. IDT plans to maintain the current production flow for existing SigmaTel products, and intends to execute an aggressive product roadmap for advanced PC and Notebook audio needs.
Additional information on this transaction will be discussed during the IDT fiscal first quarter financial results conference call. The live webcast will begin at on
For additional information on this transaction or on the IDT earnings call, visit www.idt.com.
IDT is a world leader in developing and delivering vital semiconductor solutions that enable customers to accelerate innovation. IDT solutions help customers solve complex system design challenges associated with the evolving requirements of communications, computing and consumer applications. By leveraging its system knowledge and extensive blend of technologies, IDT is able to deliver essential solutions, including timing products, network search engines, flow-control management ICs and products for standards-based serial switching. Headquartered in
Forward Looking Statements
Investors are cautioned that forward-looking statements in this release involve a number of risks and uncertainties that could cause actual results to differ materially from current expectations. Risks include, but are not limited to, global business and economic conditions, fluctuations in product demand, manufacturing capacity and costs, inventory management, competition, pricing, patent and other intellectual property rights of third parties, timely development and supply of new products and manufacturing processes, dependence on one or more customers for a significant portion of sales, successful integration of acquired businesses and technology, availability of capital, cash flow and other risk factors detailed in the Company’s Securities and Exchange Commission filings. The Company urges investors to review in detail the risks and uncertainties in the Company’s Securities and Exchange Commission filings, including but not limited to the Annual Report on Form 10-K for the year ended April 2, 2006 and Quarterly Report on Form 10-Q for the period ended January 1, 2006.
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