IRVINE, Calif., Jan 8, 2008 (PrimeNewswire via COMTEX News Network) -- Microsemi Corporation (Nasdaq:MSCC), a leading manufacturer of high performance analog mixed signal integrated circuits and high reliability semiconductors, today announced its recent acquisition of substantially all of the assets of TSI Microelectronics Corporation (TSI).
TSI was founded in 1974 to provide the U.S. Department of Defense (DoD) and its OEM contractors with a source for reliable custom hybrids and other special products used in mature, long-life defense and aerospace programs. TSI's revenue in the last 12 months totaled $1.2 million and the Company was profitable. Total consideration for TSI was $2.0 million in cash, which includes the Company's cash position of approximately $0.6 million. Microsemi expects the acquisition will be immediately accretive.
"We believe there are several synergistic opportunities that will result from the acquisition of TSI," stated James J. Peterson, President and Chief Executive Officer of Microsemi Corporation. "First, we plan to significantly grow TSI's business by leveraging our sales force in order to transition their current custom parts-only business into a standard products business. This refocus will result in a larger addressable market for Microsemi as well as higher growth rates. Second, and perhaps most important, we expect to utilize TSI's advanced packaging and substrate technologies to develop high-margin and high-ASP ICs, modules and subsystems for radio frequency, microwave and millimeter wave applications."
Microsemi Corporation, with corporate headquarters in Irvine, California, is a leading designer, manufacturer and marketer of high performance analog and mixed-signal integrated circuits and high reliability semiconductors. The company's semiconductors manage and control or regulate power, protect against transient voltage spikes and transmit, receive and amplify signals.
Microsemi's products include individual components as well as integrated circuit solutions that enhance customer designs by improving performance and reliability, battery optimization, reducing size or protecting circuits. The principal markets the company serves include implanted medical, defense/aerospace and satellite, notebook computers, monitors and LCD TVs, automotive and mobile connectivity applications. More information may be obtained by contacting the company directly or by visiting its website at http://www.microsemi.com.
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"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Any statements set forth in the news release that are not entirely historical and factual in nature are forward-looking statements, including without limitation statements concerning the expectation and timing of the completion of the acquisition of MDT, the benefits of the acquisition of MDT and its products, Microsemi's ability to successfully integrate and leverage the acquired company and realize synergies, the possibility of efficiency gains, and Microsemi's ability to enter into the sensor market and expand its portfolio of microwave semiconductors. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. The potential risks and uncertainties include, but are not limited to, such factors as changes in generally accepted accounting principles, the difficulties regarding the making of estimates and projections, the hiring and retention of qualified personnel in a competitive labor market, acquiring, managing and integrating new operations, businesses or assets, uncertainty as to the future profitability of acquired businesses, delays in the realization of any accretion from acquisition transactions, any circumstances that adversely impact the end markets of acquired businesses, difficulties in closing or disposing of operations or assets, difficulties in transferring work from one plant to another, rapidly changing technology and product obsolescence, difficulties predicting the timing and amount of plant closure costs, the potential inability to realize cost savings or productivity gains and to improve capacity utilization, potential cost increases, weakness or competitive pricing environment of the marketplace, uncertain demand for and acceptance of the company's products, adverse circumstances in any of our end markets including the challenging conditions in our analog / mixed-signal markets, results of in-process or planned development or marketing and promotional campaigns, changes in demand for products, difficulties foreseeing future demand, effects of limited visibility of future sales, potential non-realization of expected orders or non-realization of backlog, product returns, product liability, and other potential unexpected business and economic conditions or adverse changes in current or expected industry conditions, business disruptions, epidemics, health advisories, disasters, national emergencies, wars or potential future effects of the tragic events of September 11, 2001, variations in customer order preferences, fluctuations in market prices of the company's common stock and potential unavailability of additional capital on favorable terms, difficulties in implementing company strategies, dealing with environmental or other regulatory matters or litigation, or any matters involving litigation, contingent liabilities or other claims, difficulties and costs imposed by law, including under the Sarbanes-Oxley Act of 2002, difficulties in determining the scope of, and procuring and maintaining, adequate insurance coverage, difficulties, and costs, of protecting patents and other proprietary rights, work stoppages, labor issues, inventory obsolescence and difficulties regarding customer qualification of products, manufacturing facilities and processes, and other difficulties managing consolidation or growth, including in the maintenance of internal controls, the implementation of information systems, and the training of personnel. In addition to these factors and any other factors mentioned elsewhere in this news release, the reader should refer as well to the factors, uncertainties or risks identified in the company's most recent Form 10-K filed by Microsemi with the SEC. Additional risk factors shall be identified from time to time in Microsemi's future filings. The forward-looking statements included in this release speak only as of the date hereof, and Microsemi does not undertake any obligation to update these forward-looking statements to reflect subsequent events or circumstances.
Investor Inquiries: David R. Sonksen, Microsemi Corporation, Irvine, CA (949) 221-7101.
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SOURCE: Microsemi Corporation
Microsemi Corporation Financial Contact: David R. Sonksen, Executive Vice President and CFO (949) 221-7101 Editorial Contact: Cliff Silver, Manager, Corporate Communications (949) 221-7112
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