Accretive Acquisition Diversifies Product Offerings; Expands Growth Opportunities
SAN JOSE, Calif., Jan. 24, 2011 /PRNewswire via COMTEX/ --
Integrated Silicon Solution, Inc. (Nasdaq: ISSI) today announced that it has signed a definitive agreement to acquire Si En Integration Holdings Limited ("Si En"), a privately held fabless provider of high performance analog and mixed signal integrated circuits headquartered in Xiamen, China. Si En targets the mobile communications, digital consumer, networking, and automotive markets with high quality analog products. For the year ended December 31, 2010, Si En had revenue of $22.2 million, gross margin of 42.5 percent, and operating income of $5.2 million. The purchase price will be approximately $20 million in cash, based on estimated working capital and net of cash acquired. The transaction is subject to customary closing conditions and is expected to be completed in the current quarter. ISSI expects the acquisition to be immediately accretive to earnings per share.
Commenting on the transaction, Scott Howarth, president and CEO of ISSI, stated, "This acquisition diversifies our product portfolio by adding complementary technologies to our market-proven SRAM and DRAM technologies. We obtain higher margin analog and mixed signal products to sell into our current end markets, while strengthening our overall business and presence in the growing Chinese market. We believe Si En's products, design expertise and proprietary technologies will further increase our growth and profit potential by expanding our market share at existing and new customers."
Founded in 2005, Si En's current products include: audio power amplifiers used in cells phones, GPS devices, MP3 players and conference phones; LED drivers for backlighting and panel display used in cell phones, digital cameras, notebook computers and other computing and consumer applications; voltage converters used in industrial applications; and temperature sensors for computing, networking and industrial applications. Si En has been named one of the top ten IC design companies in China at the International IC-China Conference and Exhibition in both 2010 and 2009.
"By joining an established leader in semiconductor solutions, Si En will be able to leverage ISSI's strong sales and operational framework to further grow our business in China as well as other key global markets," said Sai Luen Ting, Si En chairman and CEO. "I am very excited about combining our analog and mixed signal expertise with ISSI's global capabilities to create a broader, more diversified business."
ISSI is a fabless semiconductor company that designs and markets high performance integrated circuits for the following key markets: (i) digital consumer electronics, (ii) networking, (iii) mobile communications, (iv) automotive electronics, and (v) industrial, medical, and military. ISSI is headquartered in Silicon Valley with worldwide offices in Taiwan, Japan, Singapore, China, Europe, Hong Kong, India, and Korea. Visit our web site at http://www.issi.com.
About Si En
Si-Enis a fabless semiconductor company that designs, develops and markets high performance analog and mixed-signal integrated circuits for the following key markets: mobile communications, digital consumer electronics, networking, and automotive electronics. Its primary products are audio amplifiers, LED drivers, power management and temperature sensors. Si En is headquartered in Xiamen, China. The web site is http://www.si-en.com.
Forward Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning the approximate purchase price and expected closing of the acquisition, the acquisition being immediately accretive, obtaining higher margin analog and mixed signal products, strengthening our business and presence in the growing China market, increasing our growth and profit potential by expanding our market share, leveraging ISSI's strong sales and operational framework to further grow Si En's business in China and other global markets and creating a broader, more diversified business are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those anticipated. Such risks and uncertainties include the actual purchase price and closing of the acquisition and satisfaction of the closing conditions, the future financial performance of Si En, supply and demand conditions for ISSI products and Si En products, average selling prices for ISSI products and Si En products, our ability to sell our products and Si En products and the pricing and gross margins achieved on such sales, our ability to control or reduce our operating expenses and Si En's operating expenses, changes in manufacturing yields, order cancellations, order rescheduling, product warranty claims, competition, the ability of ISSI and Si En to obtain a sufficient supply of wafers at acceptable prices, the level and value of inventory held by OEM customers, or other risks listed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's Form 10-K for the year ended September 30, 2010. The Company assumes no obligation to update or revise the forward-looking statements in this release because of new information, future events, or otherwise.
SOURCE Integrated Silicon Solution, Inc.