Seagate and Maxtor today jointly announced they have entered into a definitive agreement under which Seagate will acquire Maxtor in an all stock transaction. Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Maxtor shareholders will receive .37 shares of Seagate common stock for each Maxtor share they own. When the transaction is completed Seagate shareholders will own approximately 84% and Maxtor shareholders will own approximately 16% of the combined company. The value of the transaction is approximately $1.9 billion.
Seagateís executive management team will continue to serve in their current roles. The combined company will retain the Seagate name and executive offices will be located in Scotts Valley, California. Dr. Park will become a director of Seagate upon the closing of the transaction. Seagateís chairman, CEO, executive vice presidents, and the principal equity investors affiliated with certain of Seagateís Directors have committed to vote their shares in favor of the acquisition.
The transaction is expected to be completed in the second half of calendar 2006, subject to obtaining shareholder approvals and customary regulatory approvals. There is a termination fee of $300 million payable to Maxtor under certain conditions. The transaction is intended to be tax-free to Maxtor shareholders.
Palm reported revenue of $444.6 million in its second quarter of fiscal year 2006, ended Dec. 2, up 18 percent from the year-ago period.
Net income was $260.9 million, or $5.02 per diluted share. Net income reflected the effect of a partial reversal of a deferred tax asset valuation allowance of $226.3 million. This compares to net income for the second quarter of fiscal year 2005 of $24.7 million, or $0.48 per diluted share.
Net income in the second fiscal quarter, on a non-GAAP basis, totaled $24.4 million, or $0.47 per diluted share, excluding the effects of restructuring charges, amortization of intangible assets and deferred stock-based compensation, the related income tax provision, and the partial reversal of our valuation allowance against our deferred tax asset. This compares to non-GAAP net income in the second quarter of fiscal year 2005 of $27.2 million, or $0.53 per diluted share, which excluded the effects of amortization of intangible assets and deferred stock-based compensation. Non-GAAP net income in the second quarter of fiscal year 2005 was calculated utilizing a tax rate of approximately 19 percent, compared to the 40 percent tax rate in the second quarter of fiscal year 2006.
"Achieving the eighth consecutive quarter of year-over-year double-digit revenue growth and growing our converged device market share to 36 percent in the United States are significant accomplishments," said Ed Colligan, president and chief executive officer of Palm. "We'll roll out the Palm Treo 700w smartphone based on Microsoft's Windows Mobile, and we'll announce three additional new smartphones during calendar year 2006."
At the CES 2006 DTS will premiere DTS-HD Master Audio, the high definition surround sound solution for the next generation of high definition media. This marks the first public demonstration of high definition video content shown in conjunction with 7.1 discrete channels of surround sound that is bit-for-bit identical to the master soundtrack. Previously announced as DTS-HD, DTS-HD Master Audio has been selected as an option in the standards for the upcoming Blu-ray Disc and HD DVD media formats.
DTS-HD Master Audio is also compatible with existing generation equipment. Like all of company's audio technologies in the consumer electronics space, DTS-HD Master Audio is based on Coherent Acoustics digital codec.
DTS-HD Master Audio is expected to launch in a variety of the new high definition players and A/V receivers planned for introduction throughout 2006 from major manufacturers.
ATI today announced financial results for the first quarter of fiscal 2006 ended November 30, 2005.
Revenues for the first quarter were $591 million, a 26% increase relative to the fourth quarter of fiscal 2005. Gross margin percentage was 28.7%. Net income according to GAAP for the quarter was $7.6 million ($0.03 per diluted share). Non-GAAP adjusted net income for the quarter was $26.8 million ($0.10 per diluted share).
"We are pleased with our overall progress in the quarter and remain intensely focused on technology leadership and operational execution," said David Orton, ATI's Chief Executive Officer. "Our PC business is benefiting from strong demand for the new X1000 series GPUs as well as significant growth in integrated chipsets. Our Consumer segment continued to record solid growth with handheld shipments up nearly 60% sequentially and surpassing 21 million units in the quarter."
Intel will push up the launch of its desktop Conroe CPU and delay the debut of its 965-series chipset so that both will hit the market at the same time in July 2006 in a demand-boosting strategy, according to sources at motherboard makers in Taiwan.
Intel declined to comment. According to Intelís original schedule, the 965-series chipset and the Conroe CPU would have been launched in the second and fourth quarter of 2006, respectively. Smooth development of Conroe, however, has enabled Intel to reschedule the launch of the new CPU and revise its marketing strategy, said the sources, adding that the launch of its 965-series chipset will be delayed by a week or two.
The motherboard makers said it is good news that Intel will launch the new CPU and chipset series at the same time to form a new desktop platform. Under the original schedule, when the new chipset series hit the market, there would have been no new CPU to go with it to boost demand, noted the sources. Without extra incentives, users would hardly have been interested in replacing the 945-chipset on their motherboards with the 965-series, since the two chipsets are very similar, the motherboard makers added.
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