Zarlink Semiconductor Inc. has sold the assets of its packet switching product line to Conexant Systems Inc. for ca...
October 26, 2006
Zarlink Semiconductor Inc. has sold the assets of its packet switching product line to Conexant Systems Inc. for cash and other considerations, including a cash payment of US$5 million and additional amounts based on revenue performance of the product line over the next two years.
The US$5 million payment at closing will result in a one-time gain providing an additional US$0.03 of earnings in the current quarter.
Zarlink’s guidance for the third quarter fiscal 2007 has been revised from break-even to an EPS of US$0.03, while having no impact on revenue guidance.
Based in Irvine, Calif., Zarlink’s packet switching product line has developed a range of Fast Ethernet aggregation switches for network access equipment.
Conexant manufacturers products that enable the seamless delivery of broadband information between public access networks and the homes and businesses they serve.
“This transaction places all parties in the best position to succeed,” said Kirk Mandy, Zarlink’s president and CEO.