GigOptix Renews an Expanded Line of Credit with Silicon Valley Bank, Adding $3.5M To Borrowing Capacity

GigOptix, Inc. (NYSE MKT:

), a leading supplier of advanced high-speed semiconductor components for use in long-haul, metro, Cloud connectivity, data centers, consumer electronics links and interactive applications, through optical and wireless communications networks, today announced it has renewed an expanded revolving line of credit with Silicon Valley Bank (SVB). The latest amendment to GigOptix' credit facility with SVB extends through May 6, 2016, and immediately provides GigOptix with an additional $3.5 million of borrowing capacity, providing a $7.0 million accounts receivable revolving line of credit, while also maintaining an existing separate facility under which GigOptix is entitled to borrow up to $3.5 million with specific re-payment conditions, for a total borrowing capacity of $10.5 million. "The expansion of our line of credit adds additional flexibility to our already strong financial position, which includes almost $18 million of cash and zero debt," said Dr. Avi Katz, Chairman and Chief Executive Officer of GigOptix, Inc. "While we have no current plans to draw on this line, having the increased $10.5 million line of credit readily available improves our ability to quickly execute on potential strategic acquisitions as we continue to look for ways to further increase shareholder value." The full text of the loan agreement and the latest amendment has been filed with Securities and Exchange Commission, dated as of May 18, 2015.