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Cypress to Host Silicon Valley WebGuild Meeting on August 11, 2004
Cypress Completes Acquisition of IMEC Spinoff FillFactory NV
Belgian CMOS Image Sensor Leader is Expected to Enable Cypress To Double Its Business in Cell Phones and Expand in Other Markets
SAN JOSE, Calif. - August 4, 2004 -- Cypress Semiconductor Corp. (NYSE: CY) today announced that it has closed its acquisition of FillFactory NV, a Belgium-based leader in active pixel CMOS image sensor technology. FillFactory offers a variety of high-performance custom and standard products for some of the industry's most advanced digital photography, high-speed imaging, machine vision and automotive applications.
Cypress projects the acquisition to be accretive in 2004, excluding the cost of acquisition-related intangibles. Cypress expects the FillFactory acquisition to effectively double its sales into the cell phone market-where Cypress already is a leading seller of low-power memories-and to augment its penetration of additional market segments, including digital still cameras (DSCs) and automotive.
"In addition to being a strategic fit for Cypress in key end markets, FillFactory is also a great manufacturing fit," said T.J. Rodgers, Cypress president and CEO. "FillFactory's first Cypress-manufactured product will be made directly on our RAM8(TM) CMOS process. Cypress's MicroPower(TM) processes are very well suited for image sensors.
"FillFactory manufactures a range of state-of-the-art products, such as a 13.85-megapixel device for Kodak professional cameras, a mammography sensor that is one of the world's largest sensors and radiation-tolerant products for use in aerospace applications," Rodgers added. "Leveraging Cypress's manufacturing know-how, FillFactory's focus will expand to profitable, high-volume markets such as cell phones, DSCs and automotive sensors."
"FillFactory is a spin-off of IMEC, Europe's leading independent research center for the development of state-of-the art microelectronic technologies," said Tony Alvarez, executive vice president of Cypress's Memory Products Division, which will add FillFactory as a product line. "The acquisition provides us with an experienced, first-rate development team in a highly technical, fast-growing market."
The demand for CMOS image sensors-essentially cameras on a chip made with standard CMOS process technology-is growing rapidly, driven by a swift expansion of the market for DSCs and cell phone cameras. According to a Q204 report by the El Segundo, Calif.-based semiconductor research firm iSuppli, the 78-million-unit market for CMOS sensors in 2003 is projected to expand at an annual rate of more than 40% through 2008.
Under the terms of the acquisition, Cypress agreed to pay $100 million in cash for FillFactory.
FillFactory develops, produces and markets innovative and high-performance CMOS image sensors, based on patented technologies and know-how built up over more than 15 years. FillFactory NV was established in December 1999 as a spin-off of IMEC, the Interuniversity MicroElectronics Center. All relevant IMEC patents were assigned to FillFactory. FillFactory's staff includes former IMEC employees, many with years of experience in CMOS image sensor development that has resulted in innovative approaches, scientific publishing credits and patents. FillFactory was funded by IT-Partners, Prelude Ventures, Capricorn Venture Partners, Partners @ Venture, Dow Chemical Company, Fidimec, and MCC Sofipa.
Cypress Semiconductor Corp. (NYSE: CY) is Connecting from Last Mile to First Mile(TM) with high-performance solutions for personal, network access, enterprise, metro switch and core communications-system applications. Cypress Connects(TM) using wireless, wireline, digital, and optical transmission standards, including USB, Fibre Channel, SONET/SDH, Gigabit Ethernet and DWDM. Leveraging its process and system-level expertise, Cypress makes industry-leading physical layer devices, framers, and network search engines, along with a broad portfolio of high-bandwidth memories, timing technology solutions and reconfigurable mixed-signal arrays. More information about Cypress is accessible online at www.cypress.com.
Safe Harbor Provision
The above news release contains forward-looking statements that involve risks and uncertainties." These forward looking statements relate to the expected impact of the acquisition on Cypress's operating results, future market demand and acceptance of Cypress's and FillFactory's products, and the development of new business and products of the combined company. Cypress's actual results may vary materially from the results discussed in the forward-looking statements.
Factors that may cause such a difference include the timely development, production, and the continued and increased market acceptance of the combined companies' products, Cypress's ability to successfully combine the operation of the two companies, the ability of the combined company to compete in the highly competitive and rapidly changing marketplace, and the other risks detailed from time to time in Cypress's periodic reports with the Securities and Exchange Commission.
Cypress and the Cypress logo are registered trademarks of Cypress Semiconductor Corporation. "Connecting from Last Mile to First Mile" and "Cypress Connects" are trademarks of Cypress. All other trademarks are the property of their respective owners.