Cirrus Logic Announces Intent to Divest Video Product Line - ProSoundNetwork.com

Cirrus Logic Announces Intent to Divest Video Product Line

Austin, TX (April 28, 2005)--Cirrus Logic Inc. has announced its intent to divest its digital video product line assets and focus operations around its core, high-precision analog, mixed-signal and embedded integrated circuits (ICs) for audio and industrial applications. This action is intended to position the company for continued growth within its expanding analog, mixed-signal and embedded markets where Cirrus Logic ICs maintain broader market acceptance and solid gross margins.
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Austin, TX (April 28, 2005)--Cirrus Logic Inc. has announced its intent to divest its digital video product line assets and focus operations around its core, high-precision analog, mixed-signal and embedded integrated circuits (ICs) for audio and industrial applications. This action is intended to position the company for continued growth within its expanding analog, mixed-signal and embedded markets where Cirrus Logic ICs maintain broader market acceptance and solid gross margins.

Revenue associated with the digital video product line in the third fiscal quarter, ending Dec. 25, 2004, was $3.1 million or 7 percent of total revenue. Cirrus Logic has retained Lehman Brothers as its exclusive financial advisor in connection with a potential transaction involving the digital video product line assets.

"With more than 600 products serving greater than 3,000 end customers globally, Cirrus Logic has a strong legacy of innovation and market leadership within analog, mixed-signal and embedded applications," said David D. French, president and chief executive officer, Cirrus Logic. "I believe the actions that we are announcing today will better position us for future success and profitable growth.

"It's our intention to find a suitable buyer for the video assets as soon as possible. While I am pleased with the leadership position Cirrus Logic has created in the early stages of the fast-growing market for digital video IC applications, this action will allow Cirrus Logic to achieve a more attractive business model," said French.

Cirrus Logic's IC product portfolio includes:

-Mixed-Signal Audio Products: High-precision analog and mixed-signal products, such as digital audio converters and digital amplifier controllers for consumer, professional and automotive audio applications.
-Industrial Products: High-precision analog and mixed-signal products such as analog-to-digital and digital-to-analog converters, and amplifiers for DC measurement, power metering, and energy exploration and monitoring applications.
-Embedded Products: Integrated processor technology products such as multi-channel audio DSPs, general purpose ARM-based processors and networked audio components for consumer and industrial applications.

Cirrus Logic, Inc.
www.cirrus.com