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August 29th, 2005
SigmaTel Inc. (NASDAQ:SGTL), as an apparent part of a diversification
strategy, has completed the acquisition of Protocom Corporation, an imaging semiconductor company. Protocom will become SigmaTel’s
West Coast Imaging Center. The acquisition is expected to enable SigmaTel to diversify from its traditional market, the MP3
music player chip market. "Based on customer and industry response to the acquisition, SigmaTel now has the industry's best
low cost solutions based on the STMP3500 family and the best leading edge technology for PMPs, digital video cameras and other
multimedia products," said Ron Edgerton, CEO, SigmaTel Inc.
The acquisition is expected to allow SigmaTel to address other markets
such as digital video cameras, personal media players (PMPs), video conferencing, remote security cameras, digital still cameras
and multimedia mobile phones.
The acquisition price of Protocom was $47 million, which included
$28.2 million of SigmaTel common stock and $18.8 million in cash.
August 26th, 2005
OmniVision Technologies, Inc. (NASDAQ:OVTI) with the announcement
of $96.0 million of revenue for the three months ended July 31, 2005, projected revenue for its next quarter, its second quarter,
to rise to somewhere between $110 million and $120 million. According to Shaw Hong, OmniVision's CEO , "The fundamental strength
of our technology and our product portfolio is reflected in the fact that, as we anticipated in our year-end conference call
in June, we expect revenues to grow strongly in the second quarter. We currently expect revenues of between $110 million and
$120 million and earnings of between $0.28 and $0.33 per diluted share." He also commented on the company’s cash position
and stock purchase program, "The fundamental financial strength of our business is demonstrated by the fact that we ended
the quarter with cash and short-term investments totaling $312.0 million even after spending $17.2 million to repurchase 1,250,000
shares in the first phase of our planned $100 million share buy-back program."
OmniVision controls a sizable portion of the CMOS image chip market.
These semiconductors are widely used in the cellular camera phone and digital camera markets.
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