California Micro Devices Collaborates with SPEL Semiconductor to Add Two Leadless Molded Package Lines; Joint Investment Expecte
January 24 2007 - 9:28AM
PR Newswire (US)
New Lines Expected to Become Qualified and Operational During Next
Two Quarters MILPITAS, Calif., Jan. 24 /PRNewswire-FirstCall/ --
California Micro Devices (NASDAQ:CAMD) today announced it has
completed a joint agreement with SPEL Semiconductor to expand the
capacity of SPEL's Leadless Molded Package (LMP) lines and add
support for two new additional small profile packages. California
Micro Devices will contribute approximately $2.2 million of the
total estimated $7.75 million joint investment required for the
capacity expansion to support the additional lines. With the
growing popularity of thin profile mobile handsets and other small
portable devices such as portable media players, MP3 players and
digital cameras and camcorders, demand for the company's mobile
protection products in small profile, leadless packages has
increased dramatically. The agreement with SPEL provides California
Micro Devices an important, cost effective expansion of its
assembly capacity as it increases its penetration into this growing
segment of the mobile protection market. The two new lines will
provide assembly capacity for the company's products utilizing TLMP
and uTLMP packages. "SPEL's technology and manufacturing
capabilities are complementary with our strategy to package our
mobile handset protection products in the smallest footprints and
lowest profiles," said Robert V. Dickinson, CMD president and CEO.
"We look forward to expanding upon our relationship with SPEL as we
collaborate to bring up the new LMP lines this year." About SPEL
Semiconductor Limited SPEL Semiconductor Limited is the leading
one-stop turnkey Wafer Sort, IC Assembly & Test subcontractor
facility in India. Established in 1988 and headquartered in
Chennai, SPEL had been serving the local market from 1988 to 1994.
Having established a track record at home, SPEL turned its
attention to the more demanding global market in 1995. It has since
been serving the Silicon Valley and other parts of the world for
over 10 years now. For further information, visit
http://www.spel.com/. About California Micro Devices Corporation
California Micro Devices Corporation is a leading supplier of
application specific analog and mixed signal semiconductor products
for the mobile handset, digital consumer electronics and personal
computer markets. Key products include protection devices for
mobile handsets, digital consumer electronics products such as
digital TVs and personal computers as well as analog and mixed
signal ICs for mobile handset displays. Detailed corporate and
product information may be accessed at http://www.cmd.com/. All
statements contained in this press release that are not historical
facts are forward-looking statements which are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. They are not guarantees of future performance or
events. Rather, they are based on current expectations, estimates,
beliefs, assumptions, and goals and objectives and are subject to
uncertainties that are difficult to predict. As a result, our
actual results may differ materially from the statements made.
Often such statements can be identified by their use of words such
as will, intends, expects, plans, believes, anticipates, and
estimates. Forward-looking statements made in this release include
that the cost of the SPEL capacity expansion will be approximately
$7.75 million; that the Company will increase the penetration of
its mobile protection devices in the markets for thin profile
mobile handsets and other small portable devices; that SPEL will
successfully complete its two assembly lines and they will be
qualified and operational during the next two quarters; that SPEL
will be a cost-effective producer of TLMP and uTLMP packages; and
the Company's strategy to package its mobile handset protection
products in the smallest footprints and lowest profiles. These
forward-looking statements are based upon our assumptions about and
assessment of the future, which may or may not prove true, and
involve a number of risks and uncertainties including, but not
limited to whether SPEL's LMP assembly lines will involve more
expensive equipment than estimated or will incur other cost
over-runs to construct; whether the designed performance of our
mobile protection devices satisfies our customers' requirements so
that they continue to design our devices into their products;
whether our devices perform to their design specification; whether
competitors introduce devices at lower prices than our devices
causing us to lose market share; whether SPEL runs into labor,
government approval, or financing difficulties that delay or
prevent completion of its assembly lines; whether SPEL encounters
unexpected costs or expenses or technical difficulties so that it
is not a cost-effective package producer; and whether we encounter
design issues or SPEL encounters technical issues in packaging our
products in small footprints and lowest profiles as well as the
risk factors detailed in the company's Form 8K, 10K, and 10Q
filings with the Securities and Exchange Commission. Due to these
and other risks, the company's future actual results could differ
materially from those discussed above. These forward-looking
statements speak only as to the date of this release, and, except
as required by law, we undertake no obligation to publicly release
updates or revisions to these statements whether as a result of new
information, future events, or otherwise. DATASOURCE: California
Micro Devices Corporation CONTACT: Kevin Berry, Chief Financial
Officer of California Micro Devices, +1-408-934-3144, or Web site:
http://www.calmicro.com/ http://www.spel.com/
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