Micrel Expands Clock and Timing Solutions With Acquisition of PhaseLink
SAN JOSE, Calif., March 15, 2012 /PRNewswire/ --Micrel, Inc. (Nasdaq: MCRL), an industry leader in analog, high-bandwidth communications and Ethernet IC solutions, today announced it has signed a definitive agreement to acquire a controlling interest in PhaseLink Company Limited, a private company based in Taiwan and Silicon Valley. The acquisition is intended to complement Micrel's high performance clock generation and distribution products for the communication market, as well as expand its offerings into the consumer and industrial markets. The transaction is expected to close in the second quarter of 2012. Micrel currently expects the acquisition to be dilutive to earnings per share by approximately $0.02 per share on a non-GAAP basis in 2012 and accretive within 18 months of closing. Micrel expects to operate PhaseLink as a wholly owned subsidiary.
PhaseLink provides high performance integrated timing solutions to system and oscillator manufacturers. PhaseLink's Crystal Oscillator chips (Ultra-Low Jitter Analog Frequency Multipliers and PhasorVI VCXO and XO) are targeted at high-performance communications and storage markets. Its programmable clocks meet the needs of demanding consumer, mobile and industrial applications. PhaseLink enjoys a global customer base in these markets.
"The acquisition of PhaseLink substantially enhances Micrel's penetration into the timing market. Micrel's and PhaseLink's technologies and products are well aligned from a strategic perspective, bringing more best-in-class products to broader markets and a worldwide customer base," noted Ray Zinn, Chairman and CEO, Micrel. "High-performance products, dependable quality, and timely support are the hallmarks of Micrel customer satisfaction. With this acquisition, along with the recently released ClockWorks™ Flex products, Micrel plans to be a one-stop shop for our customers' high-performance clock and timing needs."
PhaseLink Company Limited is a recognized leader in mixed signal technology for timing source and signal conditioning ICs, in the areas of communications, data storage, and consumer products, and an innovator of many first to market products such as Analog Frequency Multipliers, DualCore LCVCO Multiplier, Triangular Modulation SST and PicoPLL. PhaseLink is principally focused on providing high performance frequency timing (XO, VCXO, EMI Reduction, Programmable Clocks, fanout buffers, and ZDBs) clock IC solutions. Phaselink was profitable in 2011.
About Micrel, Inc.
Micrel, Inc is a leading global manufacturer of IC solutions for the worldwide analog, Ethernet and high bandwidth markets. The Company's products include advanced mixed-signal, analog and power semiconductors; high performance communication, clock management, Ethernet switch and physical layer transceiver ICs. Company customers include leading manufacturers of enterprise, consumer, industrial, mobile, telecommunications, automotive, and computer products. Corporation headquarters and state-of-the-art wafer fabrication facilities are located in San Jose, CA, with regional sales and support offices and advanced technology design centers situated throughout the Americas, Europe and Asia. In addition, the Company maintains an extensive network of distributors and reps worldwide. Web: http://www.micrel.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This release includes statements that qualify as forward-looking statements under the Private Securities Reform Act of 1995, including statements regarding the Micrel's expectation of closing the transaction and acquiring control and all of the outstanding shares of PhaseLink; expected alignment and synergies of Micrel and PhaseLink products; quality and service and customer satisfaction with Micrel and PhaseLink products; the anticipated enhancement of Micrel's product offerings in the timing source and signal conditioning markets; and potential benefits of the transaction to Micrel and its customers. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. Those risks and uncertainties include, but are not limited to, such factors as: the failure of Phaselink's technology to complement and/or broaden Micrel's current technologies; the ability of the combined company to create anticipated synergies and increased product sales as a result of the acquisition; possible difficulties in combining the operating plans and cultures of Micrel and Phaselink; the impact of any current or future acquisitions; continued softness in demand for our products; economic or financial difficulties experienced by our customers; the effect of business conditions in the consumer electronics, telecommunications and industrial markets; the impact of competitive products and pricing and alternative technological advances; the worldwide financial situation, and the timely and successful development and market acceptance of new products and upgrades to existing products. For further discussion of these risks and uncertainties, we refer you to the documents the Company files with the SEC from time to time, including the Company's Annual Report on Form 10-K for the year ended December 31, 2012. All forward-looking statements are made as of today, and Micrel disclaims any duty to update such statements.
Note: Clockworks is a trademark of Micrel, Inc.
SOURCE Micrel, Inc.