A chip maker says it expects more bad news
Article Abstract:
National Semiconductor said numerous problems would produce revenue that would fall far short of analysts's estimates, as well as a 4th qtr decline. The chip maker blamed its fourth setback since Feb 1998 on areas including Cyrix subsidiary's production snags, a surplus among some PC manufacturers and the Asian economic decline hurting sales of chips that power cellular telephones. The decline also stemmed from weakened sales of midpriced machine components due to the market shift to sub-$1,000 PCs as well as its failure to keep pace with rivals's technology development of network adapters, according to National executives. Difficulties have reached National's core business of specialized chips for networking cards, cell phones and other products that blend analog and digital functions. This could impact the company's recent strategy of favoring higher-value items such as microprocessors over high-volume, inexpensive chips. Financial troubles could persist into the 1st qtr 1999.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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2 chip mergers show growing consolidation
Article Abstract:
National Semiconductor is acquiring Cyrix in a stock trade estimated to be worth $550 million and Intel is acquiring Chips and Technologies for $384 million. Both Intel and National Semiconductor will be gaining critical technology from the companies they purchase that their company's do not currently possess. National will receive from Cyrix a microprocessor that the company will use to compete with Intel's Pentium Chips. The combined companies will be capable of producing chips priced at under $500 to be used in personal computers an other small devices. By acquiring Chips and Technologies, Intel will be gaining new technology to be used in mobile personal computers to enhance their visual and graphics computing.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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Samsung Electronics plans to buy the rest of AST Research
Article Abstract:
Samsung Electronics of South Korea plans to spend $162 million purchasing the 51% of AST Research stock that it does not already own. A number of conditions will first have to be met before the proposed acquisition can be completed. Included on the list are the negotiation of a definitive merger agreement, AST's independent directors approving the transaction and receiving all the required approvals from the US and South Korean governments. AST survived the past few years by accumulating a $307 million bank debt and the cash infusions it receives from Samsung. Samsung has also been experiencing financial problems in recent years, with a 58% decline in stock prices in 1996 and a drop in memory chip prices.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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