SANTA CLARA, Calif. DSP Group Inc. has acquired products and technology for 900-MHz spread-spectrum wireless systems from Advanced Micro Devices Inc. (Sunnyvale, Calif.).
The acquisition includes AMD's intellectual property related to 900-MHz direct sequence spread-spectrum (DSS) and radio-frequency products used in cordless telephones. As part of the purchase, the DSP Group said it will gain substantially all of AMD's RF engineering team as well as the company's RF laboratory equipment.
"This acquisition is in line with our strategy of entering fast-growing markets, using our DSP and speech technologies," said Igal Kohavi, chairman of DSP Group. "The acquisition will enable our company to ship 900-MHz spread-spectrum products as early as the second half of 1999."
The acquisition is not expected to have a one-time effect on DSP Group's earnings, according to Kohavi. The effect on the earnings-per-share of DSP Group is expected to become accretive during the fourth quarter of 1999, he added.
"AMD's decision to sell our 900-MHz DSS products and technology to DSP Group reflects our strategic focus on designing and producing semiconductor products for the personal computer and PC-connectivity industries, including home networking," said Gary Ashcraft, vice president and general manager of AMD's Communication Products Division. "To ensure a smooth transition during the acquisition, AMD and DSP Group are working closely with prospective 900-MHz DSS customers to address their needs and concerns."
DSP Group recently acquired an operation of communication engineers in Israel, which gave the company "extensive capabilities in the design of base-band and RF products, said Eli Ayalon, president and CEO of DSP Group."We have added 25 wireless communication engineers in these new activities, an increase of approximately 20% in the company's headcount," Ayalon said. "We believe that DSP Group's entry into the wireless communication market, together with the introduction of our new line of integrated telephony products, will enable us to significantly grow our revenues in the year 2000."