OTTAWA, Aug. 16 /PRNewswire-FirstCall/ -- Tundra Semiconductor Corporation (TSX:TUN), a leader in System Interconnect, signed an agreement today to acquire a new product from a leading global solutions and engineering services provider.
The agreement is a significant first step in executing Tundra's previously announced smart interconnect solutions strategy. This product represents a new product line and new market opportunity for Tundra. Based on strong I/O management experience, Tundra intends to use its existing design teams to develop future products in this new product line and in the broader smart interconnect solutions product portfolio.
"We are excited to announce this major milestone today. The acquisition of this highly competitive product is a positive step forward for Tundra and strongly positions the Company for future growth," said Daniel Hoste, President and Chief Executive Officer, Tundra Semiconductor. "Tundra's new product strategy will deliver intelligent interconnect products, to provide our customers with a competitive edge in their system designs where performance depends more and more on the I/O and interconnect architecture solutions," continued Hoste.
Tundra will acquire the product for a total purchase price of $15.4 million USD, with payments impacting the next 3 fiscal years. Tundra expects revenue associated with this product acquisition to begin to impact fiscal year results in 2010 and expects that lifetime revenue will represent approximately 8 to 12 times the total investment cost.
About Tundra
Tundra Semiconductor Corporation (TSX:TUN) supplies the world's leading communications, computing and storage companies with smart System Interconnect products, intellectual property (IP) and design services backed by world-class customer service and technical support. Tundra's track record of product leadership includes over a decade of bridges and switches enabling key industry standards: RapidIO(R), PCI, PCI-X, PCI Express(R), PowerPC(R), VME, HyperTransport(TM), Interlaken, and SPI4.2. Tundra's products deliver high functional quality and simplified board design and layout, with specific focus on system level signal integrity. Tundra's design services division, Silicon Logic Engineering, Inc., offers industry-leading ASIC and FPGA design services, semiconductor intellectual property and product development consulting. Tundra's smart technology connects critical components in high performance embedded systems around the world. For more information, please visit http://www.tundra.com/.
Forward Looking Information
Tundra cautions that forward-looking information in this release is based on certain assumptions and expectations made by Tundra that may prove to be inaccurate. Assumptions made include the ability of Tundra to successfully integrate and exploit this new product, Tundra's ability to develop future products in this new product line in a timely manner to address market opportunities, customer demand for Tundra's products and services including this new product line, Tundra's ability to maintain and enhance existing customer relationships.
Furthermore, Tundra cautions that forward-looking statements in this release are based on current assumptions and expectations that are subject to risks and uncertainties. Actual results may differ due to factors such as customer demand for the new product and other products within the new product line, market risks and trading prices, customer relationships, new product development, new services offerings, product shipping schedules, competitive products and services, pricing pressure, and changes in the embedded systems market specifically. The Company assumes no obligation to update or revise any forward-looking statements. Additional information identifying risks and uncertainties is contained in the Company's filings with the various provincial securities commissions which are available online at http://www.sedar.com/.
TUNDRA and the Tundra logo are registered marks of Tundra Semiconductor Corporation in Canada, the United States, the European Union and the People's Republic of China. Design.Connect.Go. is a trademark of Tundra Semiconductor Corporation. Other registered and unregistered trademarks are the property of their respective owners.
(C) Copyright 2007 Tundra Semiconductor Corporation. All rights reserved.
Information subject to change without notice.
TUNDRA SEMICONDUCTOR CORPORATION
