OTTAWA, Aug. 16 /CNW Telbec/ - Zarlink Semiconductor Inc. (NYSE/TSX:ZL)
today announced that it has sold its Mitel Networks Corporation ('Mitel')
shares for US$12.9 million, following the approval of the merger of Mitel and
Inter-Tel (Delaware) Incorporated ('Inter-Tel').
Zarlink obtained ownership of 10 million common shares of Mitel through
the sale of its Systems Business in Fiscal 2001. In Fiscal 2002, Zarlink
acquired a put right on its shares as a result of conditions obtained by a new
investor in Mitel. On June 4th, 2007, Zarlink and other put right holders
agreed to an amendment to the put right as a result of Mitel's announced
proposed merger with Inter-Tel and associated refinancing arrangements.
As provided in the amended put right, Zarlink received payment from Mitel
of US$1.29 per share. The US$12.9 million in proceeds received through the
sale of this investment results in an additional US$0.10 EPS (earnings per
share) for the second quarter Fiscal 2008 as the Mitel shares were carried on
Zarlink's books at no value. In light of this payment and the Company's recent
acquisition of Legerity, Zarlink will be issuing revised guidance for the
second quarter Fiscal 2008 within the next week.
About Zarlink Semiconductor
For over 30 years, Zarlink Semiconductor has delivered semiconductor
solutions that drive the capabilities of voice, enterprise, broadband and
wireless communications. The Company's success is built on its technology
strengths including voice and data networks, optoelectronics and ultra
low-power communications. For more information, visit www.zarlink.com.
Shareholders and other individuals wishing to receive, free of charge,
copies of the reports filed with the U.S. Securities and Exchange Commission
and Regulatory Authorities, should visit the Company's web site at
www.zarlink.com or contact Investor Relations.
Certain statements in this press release constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties, and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from any
future results, performance, or achievements expressed or implied by such
forward-looking statements. Such risks, uncertainties and assumptions include,
among others, the following: our dependence on the successful development and
market introduction of new products; our ability to successfully integrate
businesses acquired in the future; our ability to operate profitably and
generate positive cash flows in the future; our dependence on our foundry
suppliers and third-party subcontractors; order cancellations and deferrals by
our customers; and other factors referenced in our Annual Report on Form 20-F.
Investors are encouraged to consider the risks detailed in this filing.
Zarlink and the Zarlink Semiconductor logo are trademarks of Zarlink
For further information:
For further information: Ed Goffin, Media Relations, (613) 270-7112,
email@example.com; Mike McGinn, Investor Relations, (613) 270-7210,