SAN JOSE, Calif. — (BUSINESS WIRE) — June 19, 2014 — GigOptix, Inc. (NYSE MKT: GIG), 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 that it has signed a definitive agreement to acquire for cash only, by way of assuming specified liabilities, substantially all of the assets of Tahoe RF Semiconductor, Inc., a provider of innovative, leading-edge RF/analog RFICs, IPs, and fully integrated systems and subsystems on a chip. This acquisition is expected to close on Monday, June 30th, 2014, which is the first day of GigOptix’s third quarter of fiscal 2014, and at that time, all of Tahoe RF’s team of engineers will become employees of GigOptix.
"I am happy about the acquisition of Tahoe RF which brings to GigOptix a solid team of very experienced RF engineers and a rich portfolio of proven silicon IP into our RF and Wireless product line,” said Dr. Avi Katz, Chairman and Chief Executive Officer of GigOptix, Inc. "The acquisition of Tahoe RF is one more step in our continuous quest to strengthen our industry leading RF engineering team, and enable GigOptix to address increasing aggregate data bandwidth demand through our optimized Monolithic Microwave IC (MMIC) products targeted at point-to-point wireless backhaul applications. The acquisition also puts us in an excellent position to expand into adjacent RF and wireless market opportunities, including consumer and high volume enterprise applications, such GPS devices.”
Expanding Wireless Product Line Offerings
Tahoe RF brings an extensive silicon-proven customizable IP library to GigOptix, including radio frequency front-ends, low-power transmitters, direct conversion receivers, low noise amplifiers, and fractional-N frequency synthesizers, additionally to automatic gain control and RF receiver patents.
“To support the strong RF and wireless chipset demand that we have seen so far this year, we have acquired Tahoe RF to further expand our Wireless Product Line engineering team,” said Dr. Raluca Dinu, Vice President and General Manager of the High-Speed Communications division at GigOptix, Inc. “GigOptix is trailblazing a path to providing a rich RF and wireless roadmap for the industry, striving for leading performance, increased integration, while delivering lower costs. Crafted together with Tahoe RF team, our updated RF and wireless products roadmap is available to our partners now. We are looking forward to providing our customers with the newest chipsets in the point to point wireless backhaul and adjacent markets as early as this year.”
E-Band radios shipments by GigOptix are expected to grow to 6,000 per month with total shipments in 2014 in excess of 50,000 radios, driven by the deployment of LTE cellular infrastructure in support of the ever growing demand for mobile data for smartphones. The deployment of small cells, addressed by V-Band devices, 60GHz band, is expected to be one order of magnitude greater than regular cells in urban areas and the demand for V-band radios is expected to accelerate in the next two years with volumes at much higher than E-Band.
According to EJL Wireless Research’s 10th Edition (April 2014) of the Global Digital PTP Radio Market Analysis and Forecast, 2014-2018 forecasts the global point-to-point 1 Gbps high capacity radio volumes to grow in the 60GHz and 70/80GHz bands. At 60GHz Ethernet 1 Gbps high capacity radio shipments are forecasted to grow from over 1,000 in 2014 to over 89,000 in 2018. At 70/80GHz Ethernet 1 Gbps high capacity radio shipments are forecasted to grow from over 42,000 in 2014 to over 136,000 in 2018. For sales inquiries please contact Sales@gigoptix.com.
Strong RF and Wireless Expertise
“I am pleased to welcome Irshad Rasheed and his team to the GigOptix family. Irshad joins GigOptix as Director of Marketing for RF and Wireless Product Line within the High Speed Communications business unit. The knowledge and IP that accompany Irshad and the Tahoe RF team will be applied to extend GigOptix’ wireless product portfolio from E-band to adjacent operating radio frequencies such as V-Band and others. As such, GigOptix is also uniquely positioned to become a dominant supplier in the V-band chipsets based on our specialized core skills, leading RF performance, and disruptive roadmap,” said Dr. Dinu. “With the RF and wireless expertise we are acquiring from Tahoe RF, the RF and Wireless product line is in an excellent position to expand into new emerging markets.”
Forward-Looking Statements
This press release contains forward-looking statements of GigOptix
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, including bringing of products to market with full
documentation. Such statements contain words such as "will," and
"expect," or the negative thereof or comparable terminology, and include
(without limitation) statements regarding the plans for GigOptix, new
product development and introduction, product sales growth and projected
revenues. Forward-looking statements involve certain risks and
uncertainties, and actual results may differ materially from those
discussed in any such statement. These risks include, but are not
limited to: whether the acquisition closes as planned, the ability to
successfully integrate Tahoe RF into GigOptix and expand the product
offerings and customers from such acquisition, the ability to grow
product sales, the ability to extend product offerings into new areas or
products, the ability to commercialize technology, unexpected
occurrences that deter the full documentation and "bring to market" plan
for products, trends and fluctuations in the industry, changes in demand
and purchasing volume of customers, unpredictability of suppliers, the
ability to move product sales to production levels, the ability to
compete for client design-in opportunities, the ability to cross-sell to
new clients and to diversify, the success of product sales in new
markets or of recently produced product offerings, including bundled
product solutions, and the ability of GigOptix in furtherance of its
operational objectives. Additional factors that could cause actual
results to differ are discussed under the heading "Risk Factors" and in
other sections of the GigOptix' filings with the SEC, and in its other
current and periodic reports filed or furnished from time to time with
the SEC. All forward-looking statements in this press release are made
as of the date hereof, based on information available to GigOptix as of
the date hereof, and GigOptix assumes no obligation to update any
forward-looking statement.
