LSI Logic Sells ZSP Digital Signal Processor Unit to VeriSilicon
MILPITAS, Calif., July 5, 2006 - LSI Logic Corporation (NYSE: LSI) today announced that it has sold the assets of its ZSP® Digital Signal Processor unit to VeriSilicon Holdings Co., Ltd. (VeriSilicon) for approximately $13 million in cash and stock. VeriSilicon, a leading ASIC design foundry, provides semiconductor IP and design services to customers worldwide.
Under terms of an asset purchase agreement, VeriSilicon has acquired certain assets related to ZSP licensable cores, development tools, standard products and software, including the transfer of ownership of associated issued and pending patents. In addition, a majority of the ZSP unit workforce, including engineers, software developers, marketing, sales and customer service and support representatives have joined VeriSilicon.
Related to the agreement, LSI has licensed the use of select ZSP cores from VeriSilicon, enabling the company to continue to integrate digital signal processing capabilities within current and future product offerings.
In March, 2006, LSI announced the intention to sell its ZSP digital signal processor unit as part of a broader strategy to focus on growth opportunities in the information storage and consumer electronics markets. The company also announced it would redirect R&D from non-core areas and reduce associated selling, general and administrative expenditures. The closing of this transaction is consistent with these previously announced plans.
The company does not expect to record a loss associated with the sale of the assets of its ZSP unit. The transaction, which was completed in the quarter ended June 30, 2006, is not expected to have a material impact to operations going forward.
Safe Harbor for Forward Looking Statements
This news release contains forward-looking statements, which include the following: the expectation that the company will not record a loss associated with the sale of the assets of its ZSP unit, and the expectation that the transaction will not have a material impact to operations going forward. These forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause LSI Logic’s actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to: the company’s inability to execute its intended strategy and the inability to drive increasing value for the company and its customers. For additional information, readers are referred to the documents filed by LSI Logic with the SEC, and specifically the risk factors set forth in the company’s most recent reports on Form 10-K, 10-Q and 8-K. LSI Logic is not obligated to update these forward-looking statements to reflect events or circumstances after the date of this document.
About LSI Logic
LSI Logic Corporation (NYSE: LSI) is a leading provider of silicon-to-systems solutions that are used at the core of products that create, store and consume digital information. LSI offers a broad portfolio of capabilities including custom and standard product ICs, host bus and RAID adapters, storage area network solutions and software applications. LSI products enable leading technology companies in the Storage and Consumer markets to deliver some of the most advanced and well-known electronic systems in the market today. More information is available at www.lsi.com.
About VeriSilicon
VeriSilicon Holdings Co., Ltd. is a leading world class ASIC design foundry providing semiconductor IP, design and turnkey manufacturing services for wafer foundries such as SMIC, GSMC, ASMC and others, on process technologies down to 90nm. VeriSilicon has operations in China, US, Taiwan, Japan and France. Over 500 customers worldwide have licensed VeriSilicon’s IPs and Standard Design Platforms. In 2005, VeriSilicon was ranked number three in Deloitte Technology Fast 50 China, the top 50 fastest-growing technology companies in China and number six in Deloitte Fast 500 Asia Pacific, the top 500 fastest-growing technology companies in Asia Pacific. VeriSilicon was also named one of the Red Herring 100 Private Companies of Asia, and selected as one of the EE Times 60 Emerging Startups. For more information, please visit http://www.verisilicon.com.
