SAN JOSE, Calif. -- (March 3, 2004) -- Micrel Incorporated (Nasdaq: MCRL) today announced that it has acquired a controlling interest in BlueChip Communications AS of Oslo, Norway. BlueChip is a fabless semiconductor company that designs, develops and markets high performance Radio Frequency (RF) integrated circuits and modules for the actuation and connectivity markets.
Micrel acquired approximately 94% of the outstanding BlueChip securities and options to purchase BlueChip securities in a cash-for-stock transaction. Under the terms of the agreement, Micrel paid approximately $2 million for the outstanding BlueChip securities and options. Also, Micrel will pay additional consideration of approximately $1 million if certain revenue and gross profit targets are met by the BlueChip operation during calendar year 2004. Micrel expects to incur a one-time acquisition-related charge in the quarter ended March 31, 2004, for in-process research and development activities. The charge is expected to range from $300,000 to $600,000, pending the final valuation of the BlueChip entity. For the year ended December 31, 2003, BlueChip Communications had revenues of approximately $1.8 million and a net loss of approximately $350,000. Micrel expects that this transaction, other than the in-process research and development charges, should have an immaterial impact on first and second quarter net income and be accretive in the second half of 2004.
This acquisition further enhances Micrel's ability to address the needs of the low power RF market. Micrel's RF offering is comprised of two product families: QwikRadio® receivers and transmitters, and RadioWire® transceivers. QwikRadio® devices are designed for use in low data-rate actuation products: typical examples include garage door openers, lighting and fan controls, automotive keyless entry and remote controls. The RadioWire® transceivers provide a higher level of performance for more demanding connectivity applications, such as remote metering, heating and ventilations systems, security systems and industrial automation. Micrel's current RadioWire® products were developed in conjunction with BlueChip Communications. Scott Brown, Micrel's Director of Marketing for RF and Mixed Signal Products remarked, "The acquisition of BlueChip Communications gives Micrel added applications, design and technical marketing resources to increase Micrel's penetration in the fast growing RF marketplace. Norway has a strong expertise in RF communications and Micrel intends to utilize this infrastructure to increase its RF business."
About Micrel, Incorporated
Micrel is a leading manufacturer of advanced high-performance analog, mixed-signal and digital ICs. These products include low drop-out and switching voltage regulators, PCMCIA and USB power controllers, high speed communications interfaces, operational amplifiers, comparators, voltage references, power drivers, RF devices, high speed logic and clock management ICs. Applications for these products include palmtop, notebook and desktop computers, computer peripherals, cellular phones, high speed communications systems, fiber optic communications modules, automatic test equipment, consumer electronics, industrial and process control products and avionics systems. Micrel also designs, develops and markets PHYs, repeaters and switches for Ethernet, Fast Ethernet and Gigabit Ethernet applications.
For further information, contact Richard Crowley at Micrel, Incorporated, 1849 Fortune Drive, San Jose, California 95131, 408-944-0800 or visit our Website at http://www.micrel.com.