AMCC Completes Acquisition of Cimaron Communications; Cimaron's Expertise in Framer/OHP Termination Devices to Expand
SAN DIEGO (March 18) BUSINESS WIRE -March 18, 1999--Applied Micro Circuits Corp. (AMCC)(Nasdaq:AMCC), a leader in high-bandwidth silicon connectivity solutions, Thursday announced that it has completed the acquisition of Cimaron Communications Corp., a leader in the design and development of silicon solutions and ASIC cores for high-speed SONET systems.
AMCC issued 3 million shares of its common stock in exchange for all outstanding shares of Cimaron preferred and common stock, including shares issuable upon exercise of employee stock options and other rights. Based on AMCC's closing price Wednesday of $39.06 per share, the transaction is valued at approximately $117 million. The acquisition will be accounted for as a pooling of interests.
Cimaron is located in Andover, Mass., and is a premier provider of high-speed SONET framing technology. The acquisition is a highly strategic, logical step for AMCC, and substantially expands AMCC's available markets for high-speed communications products.
Cimaron's framer and mapper expertise will enable AMCC to migrate beyond the company's analog physical media devices (PMDs) and mixed-signal physical-layer devices up into the next layer of the network protocol, the digital layer.
The acquisition also illustrates AMCC's and Cimaron's commitment to providing ever-greater levels of integration and system solutions in silicon for high-bandwidth communications markets.
Cimaron will retain its corporate identity for the near term, and will be referred to as an AMCC company. Cimaron has 35 employees, and the company's operations will remain in Andover. Former Cimaron President and Chief Executive Officer Ram Sudireddy is a vice president and officer of AMCC and reports directly to AMCC's CEO, Dave Rickey.
AMCC designs, develops, manufacturers and markets high-performance, high-bandwidth silicon solutions for the world's communications infrastructure.
The company utilizes a combination of high-frequency, mixed-signal design expertise and multiple silicon process technologies to offer IC products for the telecommunications market that address the SONET/SDH and ATM transmission standards, and for the data communications markets that address the Gigabit Ethernet, ATM and Fibre Channel transmission standards.
AMCC's core technologies also address ATE and high-speed computing needs. AMCC's corporate headquarters and wafer fabrication facilities are located in San Diego. Sales and consulting engineering offices are located throughout the world.
Cimaron designs, develops and markets highly complex digital integrated circuits for mapping, framing and pointer process functions in SONET and ATM applications.
For more information about AMCC, visit the company's Web site on the Internet at http://www.amcc.com.
Forward-Looking Statements
Except for historical information contained herein, the matters set forth in this news release are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including, but not limited to, such factors as the rescheduling or cancellation of orders by customers; fluctuations in the timing and amount of customer requests for product shipments; fluctuations in manufacturing yields and inventory levels; changes in product mix; the company's ability to introduce new products and technologies on a timely basis; the introduction of products and technologies by the company's competitors; the availability of external foundry capacity, purchased parts and raw material; competitive pressures on selling prices; the timing of investments in research and development; market acceptance of the company's and its customers' products; the financial condition and performance of the company's customers; the timing of depreciation and other expenses to be incurred by the company in connection with the expansion of its existing manufacturing facility and in connection with its proposed new facility; the timing and amount of recruiting and relocation expenses, prototyping costs and promotional expenses; costs associated with future litigation, if any, including without limitation, litigation relating to the use or ownership of intellectual property; costs associated with compliance with applicable environmental regulations; the company's success in integrating the Cimaron operations; general semiconductor industry conditions; general economic conditions, including, but not limited to, economic conditions in Asia; and the risk factors that are detailed in the company's Annual Report on Form 10-K for the year ended March 31, 1998, the company's Quarterly Report on Form 10-Q for the quarter ended Dec. 31, 1998, and the company's other filings with the Securities and Exchange Commission.
Note to Editors: AMCC is a registered trademark of Applied Micro Circuits Corp.
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CONTACT: Applied Micro Circuits Corp., San Diego
Joel Holliday, 619/450-9333
joelh@amcc.com
Debra Hart, 619/535-6566 (investors)
debrah@amcc.com
or
Financial Relations Board, Los Angeles
George Christy, 310/442-0599
gxc@la.frbd.com
KEYWORD: CALIFORNIA MASSACHUSETTS
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS TELECOMMUNICATIONS
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