CAMPBELL, Calif.--More than a year after investors took the company private, 26-year-old Zilog Inc. today announced it has registered for an initial public offering of stock valued up to $150 million.
A pioneer in 8-bit microprocessors during the late 1970s and early 1980s, Zilog was acquired in 1998 in a management buyout led by Texas Pacific Group, a private investment partnership, which hired Curtis J. Crawford as president, CEO and chairman of the chip company. Crawford was president of Lucent Technologies Inc.'s Microelectronics Group prior to joining Zilog.
Zilog has gone public before. In 1991, the company issued an IPO after a management buyout in 1989 took Zilog from oil giant Exxon Corp., which had bought the microprocessor company in 1981 to diversify its business into high-technology. Zilog was the leading supplier of 8-bit central processors for many of the early desktop computers in the early 1980s before Intel Corp. teamed with IBM Corp. to create the x86 personal computer standard with Microsoft Corp.
After the most recent buyout, Zilog refocused itself on communications and embedded control applications.
Last month, the privately-held company issued financial results for the second quarter, reporting that its sales were nearly flat at $61.5 million, compared to $61.0 million in the same period last year. The company said its gross profit was $25.2 million, a 31% increase from the second quarter of 1999. Zilog reported an overall operating income of $500,000 in the second quarter of 2000, compared to an operating loss of $8.3 million in the period last year.
The Campbell company said it ended the second quarter of 2000 with $42.9 million in cash. Research and development expenses were $9.1 million in the second quarter, up 10% from the same period last year.
All of Zilog's shares are being sold by the company. The managing underwriters for the offering are: Lehman Brothers Inc.; Prudential Volpe Technology Group, a unit of Prudential Securities; SG Cowen Securities Corp.; and Fidelity Capital Markets, a division of National Financial Services Corp.