Monday, January 31, 2011

Cavium Networks to acquire Celestial Semiconductor

MOUNTAIN VIEW, CA--(Marketwire - January 31, 2011) - Cavium Networks (NASDAQ: CAVM), a leading provider of semiconductor products that enable intelligent processing for networking, communications and the digital home, announced today that it is has signed a definitive agreement to acquire China-based privately held Celestial Semiconductor, a fabless semiconductor company headquartered in Beijing, China with centers in Shenzhen and Shanghai. Celestial is a fast growing provider of ARM-based system-on-a-chip (SoC) processor solutions for a range of digital media applications.

The net purchase price of the acquisition will be approximately $55 million, to be paid in a combination of cash and stock. In addition, there is an earnout provision whereby the purchase price can increase by up to $10 million contingent on achieving certain revenue milestones during the following 12 months. The acquisition is expected to close by the end of the first quarter of 2011. Cavium Networks expects this acquisition will be non-GAAP earnings neutral during the first half of 2011 and modestly accretive by the second half of 2011.

Video traffic has been growing exponentially and is forecasted to be over 91% of all consumer traffic on the internet by 2014 according to Cisco's Visual Networking Index study. The main drivers for this growth are the delivery of TV, VoD, Internet video, P2P traffic and video conferencing. Furthermore video is being delivered over cable, satellite, fiber and mobile networks in many different formats including MPEG 2, H.264/AVC, AVS, Adobe Flash, Google WebM, Apple Quicktime, Microsoft WMV9 and a growing number of 3D formats.

Receiving and processing video from all of these various sources and in these many different formats increases the processing demands and the complexity of home consumer devices. These devices, such as rich media centers, home media gateways, set top boxes (STB), Internet TV (IPTV), Interactive TV video receivers and hybrid media-player devices that combine cable, satellite and Internet video into one system, represent a multi-billion dollar SoC processor total available market (TAM).

Celestial provides a family of ARM-based high-performance SoCs with HD quality video processing, multi-source video input and multi-format video playback. These SoCs combine transport processing, image processing, multi-standard media playback in 480/720/1080p, noise reduction, de-interlacing, audio processing, video encoding, advanced video post processing and picture enhancement, 2D/3D graphics, advanced security and content protection. A full range of input and output options including S/PDIF, DVI, HDMI, composite and component analog video, Ethernet, digital input, SATA, USB, and audio are also provided as part of a low cost BOM design. This is combined with a feature rich software solution complete with graphical user interface and support for major conditional access standards that are required by content providers and Telcos.

Celestial products have been designed into a range of devices such as set top boxes (STB), IPTV, Interactive TVs, Net multimedia players, and portable media players being deployed by cable and telecom media service providers, Interactive cable operators, multiple system operators (MSO) in China and other emerging geographies.

"Our highly integrated SoC processors enable feature rich, low cost and low power solutions that are being adopted by major telcos and service providers in China and other geographies. We are excited about leveraging Cavium Networks' world-class engineering, operations, sales and support resources to accelerate our reach to a broader set of worldwide customers," said Daniel Fu, CEO of Celestial Semiconductor. "Our complementary market focus and product technology synergies will reduce our development time and help our clients speed their time to market."

"Celestial Semiconductor's innovative SoC products complement Cavium Networks existing ECONA and PureVu product lines and will enable us to deliver feature rich combo products for a range of high volume applications in the Connected Home," said Syed Ali, President and CEO at Cavium Networks. "This acquisition further expands Cavium's TAM in the high growth digital media market. We see highly integrated, low cost and low power SoC solutions enabling a range of cable, internet and over-the-top content applications. Combing our technologies will enable Cavium to deliver compelling and differentiated end to end solutions for the entire digital video cycle."

About Cavium Networks
Cavium Networks is a leading provider of highly integrated semiconductor products that enable intelligent processing for networking, communications and the digital home. Cavium Networks offers a broad portfolio of integrated, software compatible processors ranging in performance from 10 Mbps to 40 Gbps that enable secure, intelligent functionality in enterprise, data-center, broadband/consumer and access & service provider equipment. Cavium Networks processors are supported by ecosystem partners that provide operating systems, tool support, reference designs and other services. Cavium Networks principal offices are in Mountain View, CA with design team locations in California, Massachusetts, India and Taiwan. For more information, please visit: http://www.caviumnetworks.com.

Wednesday, January 26, 2011

Silicon Labs acquires SpectraLinear for $40M

AUSTIN, Texas, January 26, 2011 - Silicon Laboratories Inc. (Nasdaq: SLAB), a leader in high-performance, analog-intensive, mixed-signal ICs, today announced the acquisition of Silicon Valley-based SpectraLinear, a late-stage private company offering integrated timing solutions. Silicon Labs acquired the talented SpectraLinear team and a complementary portfolio of programmable clock ICs for approximately $40 million.

SpectraLinear’s family of low-power, highly programmable and small-footprint silicon clocking solutions is optimized for consumer electronics and embedded applications such as portable media players, residential gateways and digital cameras. Similar to Silicon Labs’ approach in the middle and high end of the timing market, SpectraLinear leverages a high level of integration and programmability in its product architectures to address cost-sensitive, high-volume applications. The company’s customer base includes industry leaders in the consumer market including portable device, handset and communications gear makers.

SpectraLinear’s innovative clock products complement Silicon Labs’ existing timing product line, by adding a broad family of ICs that Silicon Labs believes will accelerate penetration of the approximately $500 million opportunity in high-volume applications.

“By offering strong product synergies, tier one customer alignment and an immediate footprint in the timing subsystem of consumer devices, this acquisition further establishes Silicon Labs as a one-stop timing solution provider,” said Mark Downing, vice president of strategy and business development. “We have established a successful timing portfolio organically in high-performance applications, more than doubling our timing revenue since 2008 to greater than 10 percent of our business. We believe our acquisition of CMOS-based MEMS resonator technology in 2010 followed by today’s acquisition of SpectraLinear will enable Silicon Labs to accelerate market share gains in the timing market.”

“This combination will allow us to leverage Silicon Labs’ greater resources and sales channel to reach a broader set of customers globally,” said Ilhan Refioglu, CEO of SpectraLinear. “We believe the product line synergy will allow us to hit the ground running and rapidly capitalize on new revenue opportunities.”

SpectraLinear is based in Santa Clara, California, with design centers in Bangalore, India, and Istanbul, Turkey. The acquisition will bring 19 patents issued or pending and a team of 44 employees to Silicon Labs. The acquisition is expected to be accretive to earnings, excluding the amortization of intangibles, in its first full quarter of operations in 2011.

JVP Leads $50 Million investment in CyOptics, Inc.

JERUSALEM, ISRAEL - January 26, 2011- JVP, a leading Israeli venture capital fund, has led a $50 million investment in CyOptics, Inc. ("CyOptics"), a leader in Indium Phosphide (InP) optical chip and component technologies. The transaction entailed the purchase of shares from several existing shareholders and the financing of additional growth capital for the Company. Joining the round were existing CyOptics investors: Sprout Group, Birchmere Ventures and Eurofund.

The photonics industry is once again entering a growth phase driven by demand from wireless backhaul, cloud computing, data center congestion, video downloading and social networking. Bandwidth demands are doubling every 18 months and the optical transmit and receive sub-components designed and manufactured by CyOptics are enabling said growth. CyOptics holds a market leadership position that extends from the high volume consumer fiber-to-the home (FTTH) market, to the high technology U.S. defense market, and to the production of next generation of photonic integrated circuits.

The Company generated over $100 million in revenues in 2010 and ended the year with a strong sales backlog, granting good visibility into 2011. CyOptics serves more than 100 customers worldwide, including telecom system OEMs, module level suppliers, and the major defense contractors.

“CyOptics is uniquely positioned to bring together all of the critical technologies required to design and manufacture high performance optical devices,” said Ed Coringrato, CyOptics CEO. “This incremental investment will help to fund the working capital needed to bolster near term revenue growth and to support research & development required to deliver the next generation products and services our customers require.”

"As the relative share of web traffic comprising media and video continues to grow, our communications networks will be required to deliver unprecedented levels of bandwidth. CyOptics’ high speed, high performance solutions will increasingly enable the fulfillment of consumer demand for evolving entertainment, educational, and gaming applications. The company’s accelerated growth over the past twelve months is a clear testament to this," commented Erel Margalit, founder and managing partner of JVP, and CyOptics Chairman.

"Over the past decade, we have worked closely with the CyOptics’ management to build the Company into a leading independent global organization. The Company's strong underlying technology, broad portfolio of products, and successful acquisition and integration capabilities, position it for continued growth as a prominent player in the industry."

JVP, a global venture capital firm with over $820mm under management, is represented on the CyOptics board by its founding partner, Erel Margalit, who serves as the Company’s Chairman. JVP will nominate an additional member to the Board of Directors following this transaction.
About CyOptics
Built by industry founders and leveraging its Bell Labs heritage, CyOptics has a unique set of optical device integration and manufacturing capabilities supporting its leadership position in the supply of sub-components to the optical communications and defense/avionics markets. CyOptics is an industry leader in both hybrid integration using different elements in a single package and monolithic integration on a single chip. The Company’s products are enabled by an automated “nano-tech” capable manufacturing process that delivers best performance, uniformity and cost. The Company's InP design, device fabrication and high performance packaging operations are located in Lehigh Valley, Pennsylvania; its silica PLC fab is located in South Plainfield, NJ; its planar automated packaging and testing operations are located in Matamoros, Mexico. CyOptics is ISO 9001:2000 certified. For more information, please visit
http://www.cyoptics.com or call 1-484-397-2061.

Monday, January 24, 2011

ISSI Announces Acquisition of Si En Integration Holdings Limited

SAN JOSE, Calif., Jan. 24, 2011 /PRNewswire/ -- Integrated Silicon Solution, Inc. (Nasdaq: ISSI) today announced that it has signed a definitive agreement to acquire Si En Integration Holdings Limited ("Si En"), a privately held fabless provider of high performance analog and mixed signal integrated circuits headquartered in Xiamen, China. Si En targets the mobile communications, digital consumer, networking, and automotive markets with high quality analog products. For the year endedDecember 31, 2010, Si En had revenue of $22.2 million, gross margin of 42.5 percent, and operating income of $5.2 million. The purchase price will be approximately $20 million in cash, based on estimated working capital and net of cash acquired. The transaction is subject to customary closing conditions and is expected to be completed in the current quarter. ISSI expects the acquisition to be immediately accretive to earnings per share.

Commenting on the transaction, Scott Howarth, president and CEO of ISSI, stated, "This acquisition diversifies our product portfolio by adding complementary technologies to our market-proven SRAM and DRAM technologies. We obtain higher margin analog and mixed signal products to sell into our current end markets, while strengthening our overall business and presence in the growing Chinese market. We believe Si En's products, design expertise and proprietary technologies will further increase our growth and profit potential by expanding our market share at existing and new customers."

Founded in 2005, Si En's current products include: audio power amplifiers used in cells phones, GPS devices, MP3 players and conference phones; LED drivers for backlighting and panel display used in cell phones, digital cameras, notebook computers and other computing and consumer applications; voltage converters used in industrial applications; and temperature sensors for computing, networking and industrial applications. Si En has been named one of the top ten IC design companies in China at the International IC-China Conference and Exhibition in both 2010 and 2009.

"By joining an established leader in semiconductor solutions, Si En will be able to leverage ISSI's strong sales and operational framework to further grow our business in China as well as other key global markets," said Sai Luen Ting, Si En chairman and CEO. "I am very excited about combining our analog and mixed signal expertise with ISSI's global capabilities to create a broader, more diversified business."

About ISSI

ISSI is a fabless semiconductor company that designs and markets high performance integrated circuits for the following key markets: (i) digital consumer electronics, (ii) networking, (iii) mobile communications, (iv) automotive electronics, and (v) industrial, medical, and military. ISSI is headquartered in Silicon Valley with worldwide offices in Taiwan, Japan, Singapore,China, Europe, Hong Kong, India, and Korea. Visit our web site at http://www.issi.com.

About Si En

Si-En is a fabless semiconductor company that designs, develops and markets high performance analog and mixed-signal integrated circuits for the following key markets: mobile communications, digital consumer electronics, networking, and automotive electronics. Its primary products are audio amplifiers, LED drivers, power management and temperature sensors. Si En is headquartered in Xiamen, China. The web site is http://www.si-en.com.

Thursday, January 20, 2011

Hittite Microwave Acquires Arctic Silicon Devices

Chelmsford, MA 01/19/2011 - Hittite Microwave Corporation (Nasdaq: HITT) today announced it has acquired Arctic Silicon Devices, a developer of advanced mixed-signal integrated circuit (IC) technology, located in Trondheim, Norway. The acquisition price was approximately $12.0 million in cash and equity.

The acquisition provides Hittite with new IC design and integration capability and a state-of-the-art product line of analog-to-digital converters (ADCs). Arctic Silicon Devices has successfully designed and launched innovative, multifunction low power ADC products which target high performance applications, including test and measurement systems and communication infrastructure. The employees of Arctic Silicon Devices will continue to work at their existing facility.

About Hittite Microwave Corporation

Hittite Microwave Corporation is an innovative designer and manufacturer of high performance integrated circuits, or ICs, modules, subsystems and instrumentation for technically demanding digital, RF, microwave and millimeterwave applications covering DC to 110 GHz. The Company's standard and custom products apply analog, digital and mixed-signal semiconductor technologies, which are used in a wide variety of wireless / wired communication and sensor applications for Automotive, Broadband, Cellular Infrastructure, Fiber Optics, Microwave & Millimeterwave Communications, Military, Test & Measurement, and Space markets. The Company is headquartered in Chelmsford, Massachusetts.

About Arctic Silicon Devices

Arctic Silicon Devices is a private fabless semiconductor company based in Trondheim, Norway previously owned by the employees, Incitia Ventures and ProVenture. Arctic Silicon Devices aims to be a preferred partner for leading companies within high performance applications providing state-of-the-art Front End ICs like Data Converter Standard Products or Application Specific Standard Products based on data converter cores. The ASD products include ultra low power dissipation, ease of use, and cost efficiency, while maintaining state-of-the-art performance.

Tuesday, January 18, 2011

Tilera raises $45M round including Cisco and Samsung

SAN JOSE, Calif., Jan. 18, 2011 - Tilera® Corporation, developer of the TILE™ family of many-core processors for cloud computing and communications, today announced a round of financing, led by Artis Capital Management, that included investment from WestSummit Capital Management and Comerica Bank in addition to existing investors Walden International, Bessemer Venture Partners and Columbia Capital. Cisco Systems and Samsung Venture Investment Co. also participated, joining Tilera’s previous strategic investors: Broadcom, NTT Finance, VentureTech Alliance, and Quanta Computer.

With many customers in production today, the company is operating near breakeven and expects to reach profitability later this year. This $45 million round of funding provides a very strong balance sheet to take the company through a robust growth phase.

“Tilera processors deliver unbeatable performance and performance-per-watt to our customers in cloud and communications sectors. Having strategic investors like Cisco and Samsung is a testament to our strong penetration in these markets,” said Omid Tahernia, CEO of Tilera. “We welcome the addition of Artis Capital, a well-respected Silicon Valley firm, as well as WestSummit Capital, whose expertise will help us expand our reach into China.”

Tilera intends to use this round of funding to accelerate the development of its fourth-generation processor family, to expand sales and marketing, and to build on successes in the cloud computing and communications markets with several new products.

“Samsung Venture sees a huge opportunity for Tilera processors in network security, cloud, wireless and multimedia applications,” said Dong-Su Kim, Ph.D., Director at Samsung Venture Investment. “The scalability of the Tile Architecture is a strong differentiator and provides the marketplace with a welcome alternative for high-performance, low-power computing.”

“With a top team, revolutionary technology and a solid customer base in the embedded computing and server markets, investing in Tilera was an easy choice for us,” said Stuart Peterson, CEO of Artis Capital Management. “We believe the company is extremely well positioned and will continue to capture an increased share of the processor market.”

Tilera has been shipping many-core processors since 2007 and serves a number of vertical markets including cloud computing and communications infrastructure. A TILEPro based 512-core server, designed by Quanta computer and first demonstrated in June 2010, is now available. The TILE and TILEPro™ processor families are currently in production and the highly-anticipated TILE-Gx™ family, including the world’s first 100-core processor, will begin sampling this quarter.

About Tilera

Tilera® Corporation is the industry leader in highly scalable general purpose multicore processors for networking, wireless, and multimedia infrastructure applications. Tilera's processors are based on its breakthrough iMesh™ architecture that scales to hundreds of RISC-based cores on a single chip. The distributed nature, of Tilera's revolutionary architecture, and the standards-based tools, including ANSI C/C++ compiler, GNU tools and Eclipse IDE, deliver an unprecedented combination of performance, power efficiency and programming flexibility. Tilera was founded in October 2004, and now provides two product families: TILE64™ processors and TILEPro™ processors, with its latest TILE-Gx family planned for early 2011. The company is headquartered in San Jose, Calif., with locations in Westborough, Mass., Yokohama, Japan, Shanghai, China and Beijing.

Wednesday, January 12, 2011

BCD Semiconductor prices IPO

As reported by Dan Primack at Fortune: BCD Semiconductor Manufacturing Ltd., a Chinese maker of analog ICs for the Asian electronics industry, has set its IPO terms to six million American depository shares being offered at between $10.50 and $12.50 per share. It plans to trade on the Nasdaq under ticker symbol BCDS, with Jefferies and Stifel Nicolaus Weisel serving as co-lead underwriters. The company reports a $17 million profit on around $101 million in revenue for the first nine months of 2010. Shareholders include Venrock, New Enterprise Associates and JAFCO Asia Technology Fund. The SEC F-1 filing may be found here.