Clare, Inc., a Beverly, Mass., designer of high-voltage analog and mixed-signal integrated circuits for the communications market, today announced a definitive agreement with Sumida REMtech Corporation, a subsidiary of Sumida Corporation of Japan, to sell all of the assets of its Reed Switch business for $8 million in cash.
The closing is anticipated by mid-August, and is subject to customary closing conditions.
The company also net sales for the first fiscal quarter ended June 24, were $15.3 million, a decrease from $21.5 million for the first quarter of fiscal 2001 and an increase from $14.0 million in the last quarter of fiscal 2001.
Net loss for the first fiscal quarter of 2002 was $4.2 million, or 43 cents per share compared with a net loss of $1.9 million or 20 cents per share for the same period in the prior year, and a loss of $7.6 million, or 78 cents per share in the previous quarter.
"We have taken steps to improve the platform for moving ourcompany forward from both a financial and strategic standpoint," said Larry Mihalchik, president and CEO, in a prepared statement.
"By selling the Reed Switch business, two goals have been achieved: first, we can now concentrate completely on our semiconductor business and products and; secondly, we
have enhanced our cash position...two important elements in improving the course of our Company.
"The disposition of the reed switch business now completes the changeover of Clare from a company historically offering electromechanical components, including Reed Switches, to a company exclusively focused on newer generation products based on semiconductor technologies and designs offering the opportunity for higher growth rates and higher margins."
Seperately, Clare announced a development partnership with Analog Devices Inc. to create high-voltage IC technology for fiber optical networks that use integrated microelectromechanical systems (iMEMS).
The new technology will employ Clare's proprietary silicon-on-insulator (SOI) high-voltage IC technology. The "iMEMS" devices will integrate high-voltage circuits with CMOS logic and microelectromechnical structures, said the Beverly-based company.
Clare's "unique SOI process is very complimentary with our optical iMEMS processes," said Franklin Weigold, vice president and general manager of Analog Devices in Norwood, Mass.
The development project is expected to last two years, said the two companies.
The new partnership "represents a significant opportunity for Clare to enhance our process technology and gain entry into new markets," said Larry Mihalchik, president and chief executive officer of Clare. In 1999, the company--formerly called C.P. Clare Corp.--divested itself of its electromagnetic relay business to focus on analog and mixed-signal semiconductors.