TUNE - Sector: Technology --- Industry: Semiconductors

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TOP STORIES.......


Microtune Seeing Increased
Demand in Cable Tuner Market
Thursday's session again saw bears take control as anxiety over Friday's
job report began to spread. Sentiment surrounding the data was
mixed since negative data give more reason for the Fed to cut rates
again which is what most of Wall Street is clamoring for. One name in
the small cap space that saw some increase in buying was Microtune,
Inc. (TUNE). The Company is a silicon and subsystems company that
designs and markets radio frequency (RF) solutions for the worldwide
broadband communications and transportation electronics markets. Inventor
of the MicroTuner(TM) single-chip broadband tuner, Microtune
offers a portfolio of advanced tuner, amplifier, and upconverter products
that enable the delivery of information and entertainment across
new classes of consumer electronics devices. The Company currently
holds 67 U.S. patents for its technology. The Company's sells products
in the Cable, Digital TV, and Automotive Electronics sectors. Customers
include Advanced Digital Broadcast, Askey, Asustek Computer, Cisco,
Hitron, Motorola, Pace, Samsung, Scientific-Atlanta, ATI Technologies,
Echostar, Toshiba, Pinnacle, Samsung, Delphi/Fuba Automotive, Harman
Becker Automotive Systems, Hirschmann Car Communications,
Lear, Panasonic, Rockwell Collins and Thales. The Company is also
working with Mobile TV suppliers for a solution in bringing real time
digital TV, comparable to the perceived quality of home television sets,
to mobile devices. Interference of the television signal from the environment
can result in poor reception, disappointing viewers who expect
quality TV pictures even on a small mobile display screen. Broadcast
TV stations, cellular transmissions and automotive ignition systems can
clutter the airwaves, causing blocky TV pictures, artifacts and lost signals.
The primary cause of interference, however, is the power amplifier
within the mobile device, located only millimeters away from the
television tuner chip. The Company's line of Mobile MicroTuners(TM),
which contains its patent-pending ClearTune(TM) technology, is engineered
to suppress interference. It brings clear, sharp, stable pictures to
consumers, even across overpopulated, hostile airwaves, and reduces
the threat of interference from the power amplifier. Granted the actual
watching of television on handsets may be a few years down the line
domestically, internationally the technology may be coming online a bit
sooner. The Company is also a leading provider of silicon TV tuners
with a market of 260 million tuners in 2006 which is expected to grow
to 457 million tuners in 2010. In the Company's latest earnings report,
revenue for the three months ended June 2007 was $24.8 million, a
25% increase compared to revenue of $19.8 million for the first quarter
of 2007, and a 29% increase compared to revenue of $19.2 million
for the second quarter of 2006. Non-GAAP net income for the second
quarter of 2007 was $4.1 million, or 7c per diluted share, compared to
non-GAAP net income of $1.2 million, or 2c per diluted share for the first
quarter of 2007 and non-GAAP net income of $1.7 million, or 3c per diluted
share for the second quarter of 2006. The growth was noted as being
derived from their core markets in set top boxes and cable modems.
With gross margins in the 50% range, getting the top line growth to the
bottom was much easier, and with Cisco's ability to distribute Scientific
Atlanta set top boxes and the demand for dvr capable boxes, the top
line growth was easy to predict. The name has been embroiled in an
options backdating investigation which in July changed from an informal
probe to formal. The Company noted that it would fully cooperate with
the SEC's investigation but has yet to mention the outcome or update
investors to their findings. With continued demand for set top boxes and
the growing demand for their higher bandwidth and faster silicon chips,
the Company's earnings report for the third quarter due in three weeks
could cause shares to gain attention. With a positive resolution to their
options handling, the Company could also become an acquisition target
by some of the larger names in the space. In any event, the name is
one to watch.

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TUNE it up...

Possible....
Runaway Gap
Runaway gaps are also called measuring gaps, and are best described as gaps that are caused by increased interest in the stock. For runaway gaps to the upside, it usually represents traders who did not get in during the initial move of the up trend and while waiting for a retracement in price, decided it was not going to happen. Increased buying interest happens all of a sudden, and the price gaps above the previous day's close. This type of runaway gap represents an almost panic state in traders. Also, a good uptrend can have runaway gaps caused by significant news events that cause new interest in the stock. In the chart below, note the significant increase in volume during and after the runaway gap.

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InPlay: Microtune to be acquired for $2.92 per share in cash by Zoran Corp (ZRAN) or ~$166 mlnBriefing.com(Wed 7:31AM EDT)

7:31AM Microtune to be acquired for $2.92 per share in cash by Zoran Corp (ZRAN) or ~$166 mln (TUNE) 2.47 : Co announces that it has entered into a definitive agreement to be acquired by Zoran Corporation for $2.92 in cash for each share of co's common stock, resulting in a transaction price of ~$166 mln, or $84 mln net of cash acquired. Zoran expects the acquisition to be accretive immediately following the close of the deal, which is expected to be in the fourth quarter of 2010. Zoran Corporation and Microtune, Inc. have scheduled a conference call for 7:00 a.m. PT today to discuss the acquisition.

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Kendall Law Group Investigates Microtune Inc. Acquisition for Shareholders

Press Release Source: Kendall Law Group On Wednesday September 8, 2010, 9:56 am
DALLAS--(BUSINESS WIRE)--Kendall Law Group, led by former federal judge Joe Kendall, is investigating Microtune Inc. (NASDAQ: TUNE - News) for shareholders in connection with the proposed acquisition by the Zoran Corporation. The national securities firm's investigation seeks to determine whether Microtune and its Board breached their fiduciary duties by entering into the agreement without properly shopping for a deal that would provide better value for shareholders. If you are a Microtune shareholder and would like additional information about your rights, contact the Kendall Law Group at 877-744-3728 or by email at [email protected].

On September 8, 2010 Zoran announced that the companies have entered into a definitive merger agreement under which Microtune would be acquired by Zoran in a transaction valued at approximately $166 million, or $84 million net of cash acquired. Under the terms of the agreement, Microtune stockholders will receive $2.92 in cash for each share of Microtune/TUNE common stock held, a 19% premium over the company's Tuesday closing price. In addition, according to Thompson/First Call, at least one analyst has set a price target of $5.00 per share for Microtune stock. Due to these factors, the firm believes the transaction significantly undervalues the company.

Kendall Law Group was founded by a former federal judge, includes a former United States Attorney, prosecutors and securities lawyers who are experienced in complex securities litigation. The firm has been counsel in numerous merger and acquisition cases nationwide, including some of the largest transactions in the United States.



Contact:
Kendall Law Group LLPScott Kendall, 214-744-3000877-744-3728 Toll Free214-744-3015 [email protected]
Related Headlines
Microtune shares jump on Zoran acquisition - at MarketWatch
Kendall Law Group Investigates Microtune Inc. Acquisition for Shareholders - Business Wire
Zoran To Buy Microtune For $2.92/Shr In Cash; $166 Million - at Barrons.com
InPlay: Microtune to be acquired for $2.92 per share in cash by Zoran Corp (ZRAN) or ~$166 mln - Briefing.com
Zoran Corporation to Acquire Microtune, Inc. - Marketwire


Related Headlines
Microtune shares jump on Zoran acquisition - at MarketWatch
Kendall Law Group Investigates Microtune Inc. Acquisition for Shareholders - Business Wire
Zoran To Buy Microtune For $2.92/Shr In Cash; $166 Million - at Barrons.com
InPlay: Microtune to be acquired for $2.92 per share in cash by Zoran Corp (ZRAN) or ~$166 mln - Briefing.com
Zoran Corporation to Acquire Microtune, Inc. - Marketwire

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yOwZAAA
nice one ...