San Jose, CA, July 8, 2003 -- Pericom Semiconductor Corporation (Nasdaq National Market:PSEM) today announced that it has signed a definitive purchase option agreement to acquire the net assets of privately held SaRonix LLC of Menlo Park, CA., subject to the completion of due diligence and customary closing conditions. The transaction is expected to close in October 2003.
SaRonix was founded in 1975 and is a leading designer, manufacturer and distributor of frequency control products (FCPs). FCPs are electronic components used as time and frequency clocks in electronic products ranging from computers, network switching, and telecommunications equipment to cell phones, PDAs and televisions. SaRonix has a blue chip customer base including OEMs such as Cisco, Nortel, Lucent, Sun Microsystems, Siemens and 3Com as well as the major contract manufacturers like Celestica, Flextronics, Jabil and Solectron. The worldwide FCP market is highly fragmented and is estimated by iSuppli Corporation to be in excess of $2.3 billion with growth projections to $2.9 billion by 2007. The current SaRonix annual revenue run rate is approximately $20 million. The purchase price is expected to be under $10 million, much of which has been advanced to SaRonix in the form of convertible secured loans. SaRonix and Pericom are executing joint marketing and product development initiatives for crystal based products including clock recovery, frequency translator and timing modules. The acquisition will add to our core competencies by enabling technologies for new products, enhancing customer service and streamlining value added solutions for the combined customer base.
Alex Hui, President and Chief Executive Officer of Pericom said, "Timing solutions are a key long-term focus of Pericom. The combination of Pericom and SaRonix will enable us to provide a more complete timing solution to our customers. We view this acquisition, coupled with our internal new product development, as an integral part of our growth strategy. The synergistic joining of crystal and silicon creates additional market opportunities as it further positions us to respond positively to changing market conditions. Both Pericom and SaRonix focus on the computer, networking, telecom and storage markets, have many common major customers, and complementary geographic strengths. SaRonix has derived most of its revenue from North American and European customers. Pericom has a strong presence in Asian based telecom customers such as Huawei and ZTE as well as in computer accounts such as Dell, HP/Compaq and IBM. Our customers will receive the benefit of a financially sound combined entity with a broad range of timing solutions, a strong worldwide technical and sales presence, and excellent support structure for the large, growing Asian market."
About Pericom Semiconductor
Pericom Semiconductor Corporation (NASDAQ: PSEM) designs and develops high-performance interface integrated circuits used for the transferring, routing, and timing of high-speed digital and analog signals within and between computer, networking, and multimedia systems. Pericom's products are essential for full utilization of the speed and bandwidth built into today's Microprocessors, Memory IC's, LAN's, and WAN's. Company headquarters are located in San Jose, California, and its products are distributed worldwide. Visit website: www.pericom.com.