Intel To Acquire Zarlink`s RF Front-End Consumer Business
October 07, 2005 08:46:46 (ET)
OTTAWA, Oct 07, 2005 /PRNewswire-FirstCall via COMTEX/ -- Zarlink Semiconductor Inc. (NYSE/TSX:ZL) and its UK subsidiary, Zarlink Semiconductor Limited, have signed an agreement to sell the assets of their RF (radio frequency) Front-End Consumer Business to Intel Corporation, through its wholly-owned subsidiary Intel Corporation (UK) Limited, for approximately US$68 million in cash and US$2 million in other consideration. Subject to closing conditions, including employee retention, the transaction is expected to close in the second half of
November 2005.
Zarlink's RF Front-End Consumer Business, headquartered in Swindon, United Kingdom, develops demodulator and tuner technologies for digital television products. In Fiscal 2005, the business generated revenues of US$53 million as part of the US$75 million reported by Zarlink's Consumer Communications segment.
"This transaction places all parties in the best position to succeed," said Kirk K. Mandy, President and Chief Executive Officer, Zarlink Semiconductor. "Our RF Front-End Consumer Business will prosper as part of a company that has the scale and critical mass necessary to succeed in the consumer electronics marketplace. The transaction also allows us to focus on the network communications, optical, and ultra-low power marketplaces."
"Zarlink's world-class RF Front-End products and technologies will be an integral part of a suite of products powering Intel's new consumer electronics platforms," said Glenda Dorchak, Vice President, Digital Home Group, General Manager, Consumer Electronics Group, Intel Corporation. "Integrating leading digital television technology into these platforms is a key step to deliver the best digital home consumer entertainment experience. The deep expertise in RF/mixed-signal technology that the Zarlink team brings is key to advancing our consumer electronics business."
Zarlink will continue to support its remaining Consumer Communications portfolio.
About Zarlink Semiconductor
For over 30 years, Zarlink Semiconductor has delivered semiconductor solutions that drive the capabilities of voice, enterprise, broadband and wireless communications. The Company's success is built on its technology strengths including voice and data networks, optoelectronics and ultra low- power communications. For more information, visit www.zarlink.co
Gap up on Volume and news.
-fousc
ZL's price action had another gap on the release of its Q2 06' financial results. Volume has increased significantly on this second gap compared to when i lasted posted about this stock on the 7th. We'll see if it can sustain a nice rally this time. Resistence was met again around 1.67 so that seems to be a strong mental barrier for those who are trading this one. A close above there could be a safe bet for a strong buy signal.
Heres the link for the financial results.
http://biz.yahoo.com/prnews/051020/mo102.html?.v=4
-fousc
Todays price action came up to meet the previous high of 1.68 that occurred after the first time i posted this pick, to close today at 1.67 which is the previous high that occurred on 05/04/05. This rally is on significantly higher volume so i think will break this barrier around 1.67-68 in the near future and hopefully form into a solid uptrend. The 200 day EMA is also roughly in the area of 1.68, another rally tomorrow will break the 200 EMA and the resistence creating a bullish move as well as a buy signal.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=7317;image)
Recent price action is also forming an ascending triangle with a breakout of 1.68 also being the buy signal. Price target for the breakout of the triangle is 2.08
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=7315;image)
ZL has been getting more recognition latley Allied Telesyn just reported choosing ZL technology for its products. Here is the PR:
Allied Telesyn Chooses Zarlink CESoP Technology For Multiservice Access Platform Powering "IP Triple Play" Rollout
- ZL(TM)50110 processor provides bridging technology in iMAP access platform supporting legacy and IP services
10/24/2005 9:31:40 AM
OTTAWA, ON, Oct 24, 2005 /PRNewswire-FirstCall via COMTEX/ -- Zarlink Semiconductor (NYSE/TSX:ZL) today announced that Seattle-based Allied Telesyn is using its CESoP (Circuit Emulation Services over Packet) processor in a multiservice access platform supporting "IP triple play" services.
Allied Telesyn's end-to-end access solution allows network operators to support IP triple play voice, video and data as well as enhanced services, such as VoIP (voice-over-IP), IP video, video-on-demand and business VPNs (virtual private networks), over copper and fiber networks. Using the ZL50110 processor in its iMAP 9700 and miniMAP 9100 platforms, Allied Telesyn's access platform can seamlessly tunnel circuit-switched traffic over an Ethernet network.
For example, faced with cable competitors introducing VoIP services, local exchange carriers can deliver television and interactive applications alongside traditional voice services over an Ethernet infrastructure. In under- serviced areas, municipalities and public utility companies are offering complete residential and T1/E1 business communication services over their own FTTH (fiber-to-the-home) network.
"Network operators are demanding access technologies that fit with their existing infrastructure and have the capability to support today's applications and grow as services evolve," said Jim Holland, vice president, engineering, Allied Telesyn, a global provider of Ethernet/IP access solutions. "During the extended transition to an all-IP infrastructure, Zarlink's CESoP technology, as part of our iMAP platform, allows operators to employ cost-effective Ethernet networks without endangering valued services or requiring end customers to upgrade their equipment."
To address timing and service quality issues, the ZL50110 processor employs hardware and software techniques to ensure sub-millisecond latencies through the device, coupled with highly accurate clock recovery and synchronization. Advanced, on-chip queuing mechanisms minimize the effects of network latency by giving priority to time-sensitive voice and video packets over data traffic in processing queues.
"Operators are moving to a converged packet network, but continued customer demand for revenue-generating circuit-switched services cannot be overlooked," said Bruce Ernhofer, product marketing manager, Zarlink Semiconductor. "As part of Allied Telesyn's access solution, our CESoP technology ensures all traffic types can be supported as part of a complete, carrier-class IP triple play offering."
For information on Allied Telesyn and its iMAP platform, visit http://www.alliedtelesyn.com/ .
CESoP North American seminar series
Zarlink and its distribution partner Avnet are holding a CESoP seminar series across North America from November 1st-11th, 2005. The seminars will focus on CESoP wireless, wired and optical applications, with product demonstrations from Zarlink technology partners including Comtec Systems, Galazar Networks, and Redline Communications.
-fousc
that's a nice big fat fousc, mate. Good call on ZL - had my eye on it from your post yesterday, but didn't pick any up, as I'm all bought in and couldn't decide what to sell ???
Actually, my "who cares, just sell something" was gonna be on a break of 1.68, but we didn't get that, quite... my intuition is that it will pull back tomorrow to ascending support, which would be a better place to buy, we'll see ;)
I did sell the house on VPHM tho (not too sure about what I percieved as a failed break of a symmetrical triangle - a lot of insitutional sell offers too... hmmm), and bought in to GIGA, on ol wiseman's suggestion - big breakout end of day, should rip from now till earnings thurs.
Anyway, nice one, will keep a close eye on ;)
ZARLINK SEMICONDUCTO (NYSE:ZL) Delayed quote data
Pre-Market (RT-ECN): 2.37 0.35 (+17.33%)
Volume @.....366,200
ZL bouncing from MA(50) ;)
Goodluck!!
Nice candle with some volume coming in. Has had a reasonable consolidation and is oversold.
Lets go!
uc.
Got above the 50ma and on its way to the 200. ;)
Have a great weekend all!
uc.
A bit of a breakout here. Lets see if we can get some added volume.
uc.
Can we break into that gap. Lets see tomorrow.
uc.
Touched the 200 ma :). Now to finish closing that gap and then up, up and away.
uc.
I'm thinking shake out here before new highs above $2.49. At least I hope. :)
uc.
Things have been uuuugly here for a while, but could the tides be changing. There is a share repurchase in place, lots of little insider buy's around .88 and yesterday's surge was promising. I'm in!!!! ( I should say I'm back in.)
uc.