Cirrus Logic to sell-off digital video line to focus on analog IC
Chip designer Cirrus Logic Inc. Wednesday said it will sell its digital-video product line to an investment group led by Investcorp and August Capital.
The Cirrus Logic announcement begins:
AUSTIN, Texas – May. 25, 2005 – Cirrus Logic Inc. (Nasdaq: CRUS) today announced that it has signed a Definitive Agreement to sell its digital video product line to Magnum Semiconductor Inc., a privately held company formed by an investment group led by Investcorp and August Capital.
By divesting the video product line, Cirrus Logic is focusing on its core analog, mixed-signal and embedded integrated circuit (IC) product lines for audio and industrial markets. With this focus, Cirrus Logic is poised to leverage its intellectual property and high-margin analog product lines to drive growth and sustainable profitability. Magnum Semiconductor will focus on digital video ICs for consumer applications such as DVD recorders, hard-disk-drive-based camcorders and network media adapters. In the fourth fiscal quarter of 2005, Cirrus Logic's core analog, mixed-signal and embedded product line net sales accounted for $36.7 million and the video product line accounted for $3.7 million.