MANHASSET, N.Y. Semiconductor supplier Integrated Device Technology Inc. has agreed to acquire SigmaTel's AC-97 and High Definition Audio (HD-Audio) PC and Notebook audio codec product lines, for $72 million in cash.
The transaction is expected to close by the end of July.
IDT (San Jose, Calif.) currently plans to operate SigmaTel's PC Audio Operation as an independent business unit primarily in Austin, Texas. The acquisition is expected to enable IDT to provide increased value-add to customers while accelerating the widespread adoption and ongoing success of SigmaTel's technology.
"We believe the PC audio market is undergoing an important evolution with expanding media usage models as part of Microsoft's Vista operating system, Intel's Viiv platform and the growing importance of Voice over IP," said Greg Lang, IDT president and CEO, in a statement. "These new platforms will drive the ongoing need for improved audio quality and capabilities."
Both companies also announced earnings. For its first fiscal 2007 quarter ended July 2, IDT posted a GAAP net loss of $1.6 million, or 1 cent per share, on sales of $185.5 million, compared with a loss of $26.5 million, or 13 cents per share on sales of $167.5 million in the previous quarter.
SigmaTel posted GAAP earnings of $2.9 million, or 8 cents per share on sales of $43.8 million for the second quarter ended June 30, compared with $10.9 million, or 29 cents per share on sales of $69.6 million in the year-ago quarter.
For the third quarter, SigmaTel expects GAAP earnings of 17 to 25 cents per share on sales of $36 million to $42 million.
The company also announced that Ken Lawler has resigned from the company's Board of Directors. Lawler has been a director since August 1999 and resigned to focus on his responsibilities at Battery Ventures.