Cadence Shares Moving Lower After Company Announced Acquisition of High Speed Interface IP Assets of TranSwitch Corporation
Adding to its rapidly expanding IP portfolio, Cadence Design Systems, Inc. (NASDAQ: CDNS), a leader in global electronic design innovation, today announced that it has acquired the high speed interface IP assets of TranSwitch Corporation and has also hired its experienced IP development team. Included in this transaction are silicon-proven controllers and PHY IP for Ethernet BaseT and display standards including HDMI, DisplayPort and MHL.
"The mobile and consumer markets are key drivers of today's IP marketplace," said Martin Lund, senior vice president of the IP Group at Cadence. "The addition of these important IP assets and the team that developed them boosts Cadence's IP portfolio for these segments and gives Cadence differentiated offerings in the Ethernet and DisplayPort categories."
The acquisition has been completed and is not expected to have a material impact on Cadence's balance sheet or first quarter or fiscal 2014 results of operations. Terms of the transaction were not disclosed.
Cadence enables global electronic design innovation and plays an essential role in the creation of today's integrated circuits and electronics. Customers use Cadence software, hardware, IP, and services to design and verify advanced semiconductors, consumer electronics, networking and telecommunications equipment, and computer systems. The company is headquartered in San Jose, Calif., with sales offices, design centers, and research facilities around the world to serve the global electronics industry. More information about the company, its products, and services is available at www.cadence.com.
This press release contains certain forward-looking statements, including statements above regarding Cadence's expected benefits of the acquisition of certain assets from TranSwitch Corporation, and the impact of the acquisition to Cadence's 2014 results of operations that are based on current expectations or beliefs, as well as a number of preliminary assumptions about future events that are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements are subject to numerous risks, uncertainties and other factors, many of which are outside Cadence's control, including, among others: (i) effects of the acquisition on Cadence's financial results, the effect of regulatory review, the potential inability to successfully operate or integrate the acquired assets, including the potential inability to retain key employees; (ii) the effect of the announcement of the acquisition on Cadence's business, including the possibility that the announcement may result in delays in customers' purchases of products or services; (iii) Cadence's ability to compete successfully in the electronic design automation product, design IP and commercial electronic design and methodology services industries; (iv) the success of Cadence's efforts to improve operational efficiency and growth; (v) the mix of products and services sold and the timing of significant orders for Cadence's products; (vi) change in customer demands, including those resulting from consolidation among Cadence's customers and the possibility that the restructurings and other efforts to improve operational efficiency of Cadence's customers could result in delays in purchases of Cadence's products and services; (vii) economic and industry conditions in regions in which Cadence does business; (viii) fluctuations in rates of exchange between the U.S. dollar and the currencies of other countries in which Cadence does business; (ix) capital expenditure requirements, legislative or regulatory requirements, interest rates and Cadence's ability to access capital and debt markets; (x) the acquisition of other companies or technologies or the failure to successfully integrate and operate these companies or technologies Cadence acquires, including the potential inability to retain customers, key employees or vendors; (xi) the effects of Cadence's efforts to improve operational efficiency on Cadence's business, including its strategic and customer relationships, and its ability to retain key employees; (xii) events that affect the reserves or settlement assumptions Cadence may take from time to time with respect to accounts receivable, taxes, litigation or other matters; and (xiii) the effects of any litigation or other proceedings to which Cadence is or may become a party.
For a detailed discussion of these and other cautionary statements related to Cadence's business, please refer to Cadence's filings with the Securities and Exchange Commission. These include Cadence's most recent reports on Form 10-K and Form 10-Q, including Cadence's future filings.
© 2014 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence and the Cadence logo are registered trademarks of Cadence Design Systems, Inc. in the United States and other countries. TranSwitch is a registered trademark of TranSwitch Corporation.
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