SAN JOSE, Calif.—(BUSINESS WIRE)—October 11, 2006— Cypress Semiconductor Corp. (NYSE: CY) and Spectra Linear, Inc., a Santa Clara, Calif.-based developer of timing solutions for computation and consumer markets, jointly announced that Cypress has spun out the assets and intellectual property of its PC clock business to Spectra Linear. This transaction does not involve Cypress's general purpose clocks business.
Under the terms of the agreement, Spectra Linear acquired these
assets for an undisclosed amount of cash and equity, and licensed
access to its clock-related intellectual property. Cypress will
continue to provide wafer manufacturing, assembly, test and logistics
services to Spectra Linear. This partnership will help to ensure a
continuity of supply and a seamless transition for Cypress's PC Clock
"This transaction accelerates Spectra Linear's entry into the PC
market with world class customer engagements. Furthermore, it
establishes Spectra Linear as the largest pure play timing company,"
said the company's President and CEO, Ilhan Refioglu.
Cypress's President and CEO, T.J. Rodgers, said, "The spin-out of
Cypress's PC Clocks business is consistent with our strategic plans to
focus on mass-market programmable, system-on-chip products."
The transaction, which was closed today, calls for the transfer of
Cypress's frequency timing generators and buffers optimized for
desktop and notebook computers, computer servers and memory modules to
Spectra Linear. It does not include Cypress's general purpose clock
offerings of fixed and programmable timing products used primarily in
consumer electronics, handsets and networking applications.
Cypress solutions perform: consumer, computation, data
communications, automotive, industrial, and solar. Leveraging
proprietary silicon processes, Cypress's product portfolio includes a
broad selection of wired and wireless USB devices, CMOS image sensors,
timing solutions, specialty memories, high-bandwidth synchronous and
micropower memory products, optical solutions and reconfigurable
mixed-signal arrays. Cypress trades on the NYSE under the ticker
symbol CY. Visit us at www.cypress.com.
About Spectra Linear
Spectra Linear is a pure play integrated timing solutions company
that focuses on consumer, computation and communication markets, using
innovative, high performance mixed signal platforms for fast time to
market. Spectra Linear is venture backed by InterWest Partners and
Norwest Venture Partners. Visit us at www.spectralinear.com.
Statements made in this release that are not historical in nature
and that refer to Cypress plans and expectations for the future,
including but not limited to the expected success of the transaction
described above are forward-looking statements made pursuant to the
Private Securities Litigation Reform Act of 1995. Our actual results
may differ materially due a variety of factors, including but not
limited to Cypress' ability to support Spectra Linear going forward,
the success of the general purposes clocks business retained by
Cypress as well as the risks identified in our filings with the
Securities and Exchange Commission. All forward-looking statements
included in this release are based upon information available to
Cypress as of the date of this release, which may change, and we
assume no obligation to update any such forward-looking statement. We
use words such as "anticipates," "believes," "expects," "future,"
"look forward," "planning," "intends" and similar expressions to
identify such forward-looking statements.
Cypress and the Cypress logo are registered trademarks of Cypress
Semiconductor Corporation. All other trademarks are the property of
their respective owners.