Microchip Technology Incorporated, a leading provider of microcontroller, analog and Flash-IP solutions, announced the consummation of the sale of certain non-core assets from its Silicon Storage Technology (SST) subsidiary. The product lines sold included NAND Drives, NAND controllers, Smart Card ICs, Combo Memory, Concurrent SuperFlash, Small-Sector Flash and many-time Programmable Flash memories. The buyer, Greenliant Systems Ltd., is a new company founded by Mr. Bing Yeh, the ex-Chairman and CEO of SST. The sale included inventory, equipment, intellectual property and certain other assets and liabilities associated with the product lines. Approximately 100 employees (18% of SST’s workforce) transferred to Greenliant as part of this transaction. SST also agreed to provide certain transition services to Greenliant for up to 90 days. The terms of the transaction were not disclosed.
“This transaction represents a step in Microchip’s previously announced plans to restructure SST by selling certain non-core assets. The transaction involved employees as well as assets in Sunnyvale, California; Hsinchu, Taiwan; and Shanghai and Beijing, China. We are very pleased with the expediency with which we were able to consummate this multi-country cross-border transaction,” said Steve Sanghi, Microchip’s President and CEO.
Mr. Sanghi added, “Since closing the acquisition of SST on April 8, 2010, we have been working diligently on the integration activities associated with SST which include taking actions to achieve strong financial returns from the continuing businesses, integrating the SST employees into the Microchip culture, and actively marketing those assets held for sale. We are well on our way to transforming SST into Microchip’s business model which we believe will provide substantial long-term value to our stockholders.”
Mr. Sanghi concluded, “This transaction should have no impact on our previous financial guidance for continuing operations. The results from the business units sold to Greenliant have been classified as discontinued operations and will be reported as such through the date of the transaction in our financial results for the June 2010 quarter.”
There will be no conference call held in conjunction with this announcement. Microchip executives will be attending the UBS Investment Bank Global Technology and Services Conference in New York, New York on Wednesday, June 9, 2010 at 3:30 p.m.
Microchip Technology Incorporated is a leading provider of microcontroller, analog and Flash-IP solutions, providing low-risk product development, lower total system cost and faster time to market for thousands of diverse customer applications worldwide. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality.
About Greenliant Systems
By leveraging more than 20 years of solid-state storage design expertise, Greenliant Systems is dedicated to developing energy-efficient, highly reliable and secure storage solutions for the embedded system, data center and mobile Internet markets. The company is currently headquartered in Sunnyvale, California with product development and sales teams in North America, Europe and Asia.
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