12/23/2002 - RF Micro Devices, Inc. (Nasdaq: RFMD), a leading provider of proprietary radio frequency integrated circuits (RFICs) for wireless communications applications, announced the acquisition of Resonext Communications, Inc., a privately held company providing complete, highly integrated CMOS wireless local area network (WLAN) solutions for 802.11a and multi-band (802.11a/b/g) platforms.
The acquisition of Resonext expands RFMD's total addressable market and is expected to complement the Company's growing presence in 802.11b products. Resonext's product portfolio focuses on 802.11a and emerging multi-band WLAN technologies (802.11a/b/g).
RFMD issued $133 million in stock for all of the outstanding shares of capital stock of Resonext, including the shares issuable upon exercise of outstanding warrants and employee stock options. Fourteen million shares of stock were issued or reserved for issuance at a value of $9.50 per share, as determined by a trailing 20-trading day average price and a collar on RFMD's stock price of between $6.00 and $9.50 per share. In the current quarter ending December 31, 2002, RFMD currently expects to incur approximately $15.0 million in one-time acquisition charges in connection with this acquisition, subject to the completion of an independent valuation analysis. RFMD currently estimates the transaction will be accretive to earnings on a GAAP basis in the December 2003 quarter.
Jerry Neal, executive vice president of marketing and strategic development, said, "We're excited to join forces with Resonext. We believe our combined strengths and unique technology will position RFMD to become the leading provider of WLAN chipsets. Our 802.11b revenues have grown rapidly, and we expect to achieve double-digit sequential growth in units and dollars in the December quarter. We believe our acquisition of Resonext will provide even more compelling growth opportunities in calendar 2003 and beyond."
RF Micro Devices is hosting a conference call at 5:00 p.m. (ET) on January 21, 2002, to discuss fiscal 2003 third quarter results and comment on the Company's outlook. The Company will provide additional details on the Resonext transaction at that time. The conference call will be broadcast live over the Internet and can be accessed by any interested party at www.streetevents.com or www.rfmd.com
RF Micro Devices, Inc., an ISO 9001-certified manufacturer, designs, develops, manufactures and markets proprietary radio frequency integrated circuits (RFICs) primarily for wireless communications products and applications such as cellular and PCS phones, base stations, wireless LANs, and cable television modems. The Company offers a broad array of products - including amplifiers, mixers, modulators/demodulators, and single-chip receivers, transmitters and transceivers - representing a substantial majority of the RFICs required in wireless subscriber equipment. The Company's strategy is to focus on wireless markets by offering a broad range of standard and custom-designed RFICs in order to position itself as a "one-stop" solution for its customers' RFIC needs. RF Micro Devices, Inc. is traded on the Nasdaq National Market under the symbol RFMD.
RF MICRO DEVICES(R) and RFMD(R) are trademarks of RFMD, LLC.
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