Analog Devices to Sell FUSIV Network Processor and ADSL ASIC Product Line to Ikanos Communications
NORWOOD, Mass.—(BUSINESS WIRE)—Jan. 12, 2006—
Analog Devices (NYSE: ADI) announced today that it has
signed a definitive agreement with Ikanos Communications, Inc.
(NASDAQ: IKAN) to sell its FUSIV network processor and Asymmetrical
Digital Subscriber Line (ADSL) application-specific integrated circuit
(ASIC) product line. The divesture is in line with ADI's strategy of
focusing its digital signal processing (DSP) investments in areas
where ADI's signal processing expertise can earn superior returns.
This product line currently represents approximately 2% of revenue for
ADI. The transaction is expected to complete in the first calendar
quarter of 2006 and result in the recognition of a small gain on the
sale.
"The agreement with Ikanos met our goal of finding a strategic fit
for our network processor and ADSL ASIC products to provide ongoing
development and support for our customers," said Brian McAloon, vice
president for DSP and Systems Products.
ADI will continue to invest in and support high-performance analog
and programmable DSP products for a wide range of broadband
applications.
Analog Devices, Inc. is a leading manufacturer of high-performance
analog and digital signal processing integrated circuits used in
virtually all types of electronic equipment. The company is
headquartered in Norwood, Massachusetts and employs approximately
8,900 people worldwide. It has manufacturing facilities in
Massachusetts, California, North Carolina, Ireland, and the
Philippines. Analog Devices' stock is listed on the New York Stock
Exchange and the company is included in the S&P 500 Index.
Safe harbor statement under the Private Securities Litigation
Reform Act of 1995: This press release contains forward-looking
statements, including our statements regarding the sale of our product
line described above, and planned revenue, earnings, and operating
margins, that are based on our current expectations, beliefs,
assumptions, estimates, forecasts, and projections about the industry
and markets in which Analog Devices operates. The statements contained
in this release are not guarantees of future performance and involve
certain risks, uncertainties, and assumptions that are difficult to
predict. Therefore, actual outcomes and results may differ materially
from what is expressed in such forward-looking statements, and such
statements should not be relied upon as representing Analog Devices'
expectations or beliefs as of any date subsequent to the date of this
press release. Important factors that may affect future operating
results include the effects of adverse changes in overall economic
conditions, currency exchange rate fluctuations, the timing and
duration of market upturns and downturns, the risk that the
transaction described above will not be consummated on the stated
timetable, if at all, the growth or contraction of the markets we
serve, demand for semiconductors generally and for our products in
particular, the risk that our backlog could decline significantly, our
ability to hire engineers and other qualified employees needed to meet
the expected demands of our customers, reversals or slowdowns in the
markets or customers served by our products, the adverse effects of
building inventories to meet planned growth that fails to materialize,
the occurrence and frequency of inventory and lead-time reduction
cycles, raw material availability, availability of both internal and
external manufacturing capacity, technological and product development
risks, competitors' actions and technological innovations, and other
risk factors described in our most recent Form 10-K for the fiscal
year ended October 29, 2005, as filed with the Securities and Exchange
Commission.
For more Information Contact: Maria Tagliaferro, Director of
Corporate Communications, Analog Devices, Inc. 781-461-3282
(phone);781-461-3491 (fax); investor.relations@analog.com (email)
Contact:
Analog Devices, Inc.
Maria Tagliaferro, 781-461-3282
781-461-3491 (fax)
Email Contact
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