SAN JOSE, Calif., Jan. 24, 2011 /PRNewswire/ -- 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."
About ISSI
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-En is 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.