OTTAWA, ON, July 16 /CNW Telbec/ - MOSAID Technologies Inc. (TSX:MSD),
today announced that the Company has signed an agreement to sell certain
assets of its Semiconductor Intellectual Property (IP) product development
business to Synopsys, Inc. (Nasdaq:SNPS), a world leader in semiconductor
design software, for approximately US$15 million in cash. The agreement is
expected to close in August 2007, with the payment subject to a US$2 million
holdback for one year. Synopsys also plans to hire the Semiconductor IP
engineering team.
Synopsys has agreed to purchase the assets and intellectual property
associated with MOSAID's Double Data Rate (DDR) memory controller and Phase
Locked Loop (PLL) product families. In connection with the transaction,
Synopsys will also receive an exclusive license to certain patents and pending
applications associated with MOSAID's current memory controller and PLL
product lines.
"With the sale of our Semiconductor IP assets to Synopsys, we will move
forward as a pure-play intellectual property company focused on patent
licensing and advanced memory R&D," said John Lindgren, President and CEO,
MOSAID. "Our Semiconductor IP group has successfully developed and sold
best-in-class technology and products to the global semiconductor industry. We
decided that these assets would perform better in the hands of an industry
leader with complementary product lines and the scale to succeed in a
competitive market, allowing us to concentrate on our core business."
About MOSAID
MOSAID Technologies Inc. is one of the world's leading intellectual
property companies. MOSAID develops semiconductor memory technology, and
licenses patented intellectual property in the areas of semiconductors, and
wired and wireless communications systems. MOSAID counts many of the world's
largest semiconductor companies among its customers. Founded in 1975, MOSAID
is based in Ottawa, Ontario. For more information, visit
www.mosaid.com.
Forward Looking Information
This document and certain other public documents incorporated by
reference in this document, contain forward-looking statements to the extent
they relate to MOSAID or its management, including those identified by the
expressions "anticipate," "believe," "foresee," "estimate," "expect,"
"intend," "could," "may," "plan," "will," "would" and similar expressions.
Similarly, statements in this document that describe MOSAID's business
strategy, outlook, objectives, plans, intentions or goals also are
forward-looking statements. These forward-looking statements are not
historical facts, but rather reflect MOSAID's current expectations regarding
future events. These forward-looking statements are subject to a number of
risks and uncertainties that could cause actual results, performance or
achievements to differ materially from those in such forward-looking
statements. Assumptions made in preparing forward-looking statements and
financial guidance include, but are not limited to, the following: MOSAID's
continued expansion of its patent portfolio and of its opportunities for
future patent licensing revenue as a result of MOSAID's acquisition of patents
from third parties and from development of new inventions; DRAM manufacturers
continuing to infringe MOSAID's patents; the timing and amount of MOSAID's
litigation expenses; MOSAID's ability to sign new patent licensees; current
assumptions as to the identification of products that are unlicensed to
MOSAID's wireless patents; and the timing and amount of MOSAID's Research &
Development expenses.
Factors that could cause actual results to differ materially from
expected results include, but are not limited to, the following: the extent of
embedded DRAM proliferation in the System-on-a-Chip markets; legal rulings
and/or regulatory investigations or complaints having an adverse impact on the
validity, enforceability, potential royalty rates, and strength or breadth of
coverage of MOSAID's essential and/or nonessential patents (including, but not
limited to, adverse results from litigation or proceedings in patent offices
and government regulatory agencies in various countries around the world);
judicial, legislative or regulatory changes that impair the ability of patent
holders to earn licensing revenues; economic, social, and political conditions
in the countries in which MOSAID or patent licensees operate, including
security risks, health conditions, possible disruptions in transportation
networks and fluctuations in foreign currency exchange rates; non-payment or
delays in payment by licensees; variability in patent licensees' sales of
licensed products, failure to maintain and enforce MOSAID's existing patent
portfolio, or failure to obtain valuable patents as a result of research and
development activities, or failure to acquire valuable patents from third
parties; MOSAID's ability to recruit and retain skilled personnel; change in
MOSAID's financial position; consolidation of MOSAID's licensees; natural
events, such as severe weather and earthquakes in the locations in which
MOSAID or patent licensees operate; changes in the tax rate applicable to
MOSAID as the result of changes in the tax law in the jurisdictions in which
profits are determined to be earned and taxed, the outcome of tax audits and
the ability to realize deferred tax assets; and adverse impacts of the current
strategic alternatives initiative on employee morale, or management's capacity
to focus on business execution.
MOSAID assumes no obligation to update or revise any forward-looking
statements. Additional information identifying risks and uncertainties
affecting MOSAID's business and other factors that could cause MOSAID's
financial results to fluctuate are contained in MOSAID's Annual Information
Form, under the section entitled "Risk Factors," and in MOSAID's other public
filings available online at
www.sedar.com.
For further information:
Investor Inquiries:
Michael Salter, Director
Investor Relations and Corporate Communications
(613) 599-9539 x1205
Email Contact
Media Inquiries:
Colleen McGuire
Communications
Specialist
(613) 599-9539 x1228
Email Contact