BURLINGTON, ON, Jan. 3 /CNW/ - Gennum Corporation (TSX: GND) and Sigma
Designs (Nasdaq: SIGM) announced today the companies have reached a definitive
agreement for Sigma's purchase of Gennum's VXP(R) image processing business.
Gennum announced its intention to explore strategic alternatives for its VXP
Group in August 2007. Today's milestone is part of Gennum's ongoing strategy
to focus on delivering proven optical, analog and mixed-signal solutions for
the video broadcast, data communications and consumer connectivity markets.
"We are intently focused on closely collaborating with our customers to
deliver compelling and innovative solutions for the video broadcast, consumer
and data communications markets and turning our customers' visions into a
reality," said Dr. Franz Fink, President and CEO of Gennum. "The sale of the
VXP Group streamlines our organization so we can continue to aggressively
pursue opportunities in high-growth markets requiring optical, analog and
VXP is one of the most advanced single-chip image processors available
today delivering crisp, natural looking, artifact-free images on displays of
any size. Advanced image processing algorithms incorporated into each VXP
integrated circuit (IC) ensures outstanding image quality for the consumer
display, television and video projection markets.
"Gennum's innovative line of VXP image processing products and skilled
VXP design team will allow us to expand into the professional market and add
broadcast studio quality to our IC offerings for high-volume consumer
applications in set-top boxes for IPTV, high-definition disc players and
digital televisions," said Thinh Tran, President and CEO, Sigma Designs. "The
addition of the VXP Group's leading video processing further extends Sigma's
world leadership in multimedia SoC solutions."
Sigma will acquire all aspects of the VXP Group including, but not
limited to, products, and intellectual property. Approximately 46 employees
will be joining Sigma Designs as part of the sale and the VXP Group, headed by
David Lynch, plans to remain in Burlington. The transaction, which is subject
to customary closing conditions, is anticipated to be completed by
mid-February 2008. Cash proceeds from the sale of the VXP business are
approximately U.S. $18 million.
This is the third sale of non-core assets over the past six months. As
previously announced, Gennum's hearing instruments products and manufacturing
operations were sold to Sound Design Technologies, a Gores Equity portfolio
company, in October 2007 for approximately U.S. $12.5 million, while Gennum's
consumer headset business was sold to CellPoint AB in August 2007. Gennum has
also begun to build around its core capabilities in optical and analog and
mixed-signal portfolio as it completed its acquisition of Snowbush
Microelectronics in October 2007 for approximately CDN $24 million.
Gennum Corporation (TSX: GND) designs innovative semiconductor solutions
and intellectual property (IP) cores for the world's most advanced consumer
connectivity, enterprise, video broadcast and data communications products.
Leveraging the company's proven optical, analog and mixed-signal products and
IP, Gennum enables multimedia and data communications products to send and
receive information without compromising the signal integrity. A winner of a
Technical Emmy(R) award for advances in high definition (HD) broadcasting,
Gennum is headquartered in Burlington, Canada, and has global design, research
and development and sales offices in Canada, Mexico, Japan, Korea, Germany,
United States, Taiwan and the United Kingdom. www.gennum.com
About Sigma Designs, Inc.
Sigma Designs is a leading fabless provider of highly integrated
system-on-chip, or SoC, solutions that are used to deliver multimedia
entertainment throughout the home. Sigma's SoC solutions combine its
semiconductors and software and are a critical component of multiple
high-growth, consumer applications that process digital video and audio
content, including internet protocol TV, or IPTV, high definition DVD players,
high definition TVs, or HDTVs, and portable media players. Headquartered in
Milpitas, Calif., Sigma Designs also has sales representatives in the United
States, Belgium, China, Japan and Taiwan and sells its products through a
third-party distributor in Korea. For more information, please visit Sigma
Designs' web site at www.sigmadesigns.com.
This document may contain forward-looking statements relating to Gennum's
goals, strategies, financial condition and results as well as the environment
in which Gennum operates, investments, and litigation in which Gennum is
involved, which may involve estimates, forecasts and projections.
Forward-looking statements may include words such as "plans", "intends",
"anticipates", "should", "estimates", "expects", "believes" and similar
expressions. These statements are not guarantees of future performance and
involve risks and uncertainties that are difficult to predict and/or are
beyond Gennum's control. A number of important factors could cause actual
outcomes and results to differ materially from those expressed in these
forward-looking statements. These factors include those set forth in Gennum's
public filings. Consequently, readers should not place any undue reliance on
such forward-looking statements. In addition, these forward-looking statements
relate to the date on which they are made. Gennum disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Gennum, the Gennum logo are registered trademarks of Gennum Corporation.
All other product or service names are the property of their respective
owners. Gennum Corporation, 2008
For further information:
For further information: Gennum Media Contact: Robin Vaitonis, (905)
632-2999 ext. 2110, firstname.lastname@example.org; Sigma Media Contact: Ken Lowe, Sigma
Designs, Inc., (408) 957-9850, email@example.com; Allyson Stinchfield, Atomic
PR, (415) 402-0230, firstname.lastname@example.org