Gennum Sells BST Technology Group to Paratek Microwave
Gennum Sells BST Technology Group to Paratek Microwave
BURLINGTON, Ontario, March 5, 2009 – Gennum Corporation (TSX: GND) and Paratek Microwave, Inc. announced today that the companies have completed a transaction involving the purchase by Paratek of Gennum's barium strontium titanate (BST) technology group and its associated assets. BST is an emerging component technology for mobile handsets. The transaction provides Gennum increased flexibility to invest in its core portfolio and continue to accelerate new optical, analog and mixed-signal and IP product development.
"Over the past two years, we have continued to focus our portfolio in order to bring our customers the differentiated, innovative optical, mixed-signal and analog technologies their products demand," said Dr. Franz Fink, President and CEO, of Gennum. "Having worked with Paratek on BST technology and product development over the last several years, it was a natural choice for Paratek to acquire our BST group and its associated assets and continue the commercialization of this technology. As they continue to work with leading customers to integrate into next-generation mobile applications, our shareholders will be able to benefit from the success of BST."
"Gennum has been an important contributor to the technological development and advancement of BST. With Gennum deciding to focus its investments on its core portfolio, we were provided the opportunity to acquire the BST technology group and assets and augment our own efforts to continue the commercialization of this technology," said James DiLorenzo, CEO of Paratek Microwave. "By combining Gennum's BST expertise and existing patent portfolio with our own applications, materials and systems expertise, we believe this acquisition further strengthens our position to bring ParascanTM based solutions to market and capitalize on the significant opportunities it presents for multi-band, multi-mode mobile handsets."
The compensation to Gennum from the sale transaction includes a payment of approximately US$1.5 million for tangible assets, which amount was paid at closing, and additional technology transfer fees payable within the three year period following the closing. In addition, Gennum is entitled to be paid a royalty based on a percentage of Paratek's BST-related revenue over a fixed period.
Paratek has acquired all assets of the BST technology group including equipment and intellectual property. Four employees of Gennum will join Paratek as part of the sale transaction.
About BST Technology
Manufactured on silicon or ceramic wafers, thin-film BST capacitors offer high capacitance density, excellent high frequency performance, and exceptional tunability. This enables an unprecedented level of miniaturization, flexibility and performance, and as important, enables extremely low power consumption in mobile handsets.
About Paratek
Paratek Microwave, Inc. designs and manufactures adaptive RF front-end component solutions for mobile wireless applications requiring multi-mode and multi-band operation. The Company is privately held and headquartered in Columbia, MD, with additional offices in Nashua, NH and Crystal Lake, IL.
About Gennum
Gennum Corporation (TSX: GND) designs innovative semiconductor solutions and intellectual property (IP) cores for the world’s most advanced consumer connectivity, enterprise, video broadcast and data communications products. Leveraging the company’s proven optical, analog and mixed-signal products and IP, Gennum enables multimedia and data communications products to send and receive information without compromising the signal integrity. An award winner for advances in high definition (HD) broadcasting, Gennum is headquartered in Burlington, Canada, and has global design, research and development and sales offices in Canada, Mexico, Japan, Korea, Germany, United States, Taiwan, India and the United Kingdom. www.Gennum.com.
Gennum Media Contact:
Keri Fraser
<!-- Director of Corporate Communications
//-->Gennum Corporation
613-270-0458 x 2909
keri.fraser@gennum.com
Gennum Investor Relations Contact:
Gord Currie
Senior Vice-President, Finance & Administration and CFO
Gennum Corporation
(905) 632-2999 x3060
gord.currie@gennum.com
Caution Regarding Forward-Looking Information
This news release contains statements which constitute forward-looking statements. These forward-looking statements are not descriptive of historical matters and refer to management’s expectations or plans. These statements include but are not limited to statements concerning: Gennum’s plans and expectations relating to improvements in profitability and cash flow and the achievement of business model targets and levels, the reduction of corporate and operations costs and capital expenditures and marketing, sales and administration expenses; expected operational expense savings and estimated severance and related costs, and the estimated charges relating thereto and to impairments; and Gennum’s business objectives and future financial performance and prospects. Inherent in forward-looking statements are risks and uncertainties beyond Gennum’s ability to predict or control including but not limited to risks associated with: Gennum’s ability to complete the actions referred to in this news release within anticipated timeframes and to successfully realize the expected improvements therefrom; compliance with local employment legislation and requirements and the possible initiation and outcome of legal proceedings; and other risks facing Gennum’s business including competitive and pricing pressures and economic cycles in the semiconductor industry, fluctuations in foreign exchange rates and their potential adverse impact upon Gennum’s financial results, and Gennum’s ability to attract and retain key personnel necessary for its business. Please also refer to the sections entitled “Risks and Uncertainties” in Gennum’s 2008 annual report and “Risk Factors” in Gennum’s annual information form dated February 23, 2009. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such statements are based on a number of assumptions which may prove to be incorrect including but not limited to the following assumptions: Gennum is able to successfully complete the actions referred to herein within the timeframe and with associated expense savings generally as anticipated and without unforeseen significant costs or delays; assumptions relating to severance and related costs and to charges; customer demand for Gennum’s products remains generally as anticipated; Gennum’s is able to execute its product roadmap without delays or disruptions having a material impact on Gennum; Gennum’s expectations relating to competitive pressures, including pricing pressures, are not materially incorrect; significant fluctuations in foreign exchange rates which significantly adversely affect Gennum’s financial results do not arise; and Gennum is able to continue to retain and attract technical and other key employees. Readers are cautioned that the foregoing list of important factors and assumptions is not exhaustive. Forward-looking statements are not guarantees of future performance. Events or circumstances could cause Gennum’s actual results to differ materially from those estimated or projected and expressed in, or implied by, these forward-looking statements. Consequently, readers should not place any undue reliance on these forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. In addition, these forward-looking statements relate to the date on which they are made. Gennum disclaims any intention or obligation to update or revise any forward-looking statements or the foregoing list of factors, whether as a result of new information, future events or otherwise, except to the extent required by law.


