Electronics Production |
ISSI completes Spin-off of Giantec Semiconductor
Integrated Silicon Solution has completed the spin-off of its subsidiary, Giantec Semiconductor, which focuses on the ASSP business that includes EEPROM and SmartCard products.
As part of the spin-off process, Giantec received an additional direct investment of USD 3.75 million from Shanghai Pudong Science and Technology Co., Ltd and USD 250'000 from Super Solution Limited, resulting in ISSI's ownership percentage now being less than 50%.
As such, the revenue and operating results of Giantec will only be included in ISSI's consolidated financial statements through December 30, 2010, the date the new investment transaction closed. Thereafter, ISSI's operating results will reflect its proportional share of Giantec's net income or loss, and ISSI's balance sheet will not include any of Giantec's assets or liabilities. Giantec recorded USD 6.0 million of revenue in the quarter ended September 30, 2010.
"We are pleased that Giantec has received new investment from Shanghai Pudong Science and Technology and Super Solution Limited. Their investment provides Giantec with additional capital for growth, and we believe further enhances Giantec's position in the Chinese market as a stand-alone company. This transaction also enables ISSI to focus our efforts and resources on further growing our business and penetrating our target markets", said Scott Howarth, ISSI's President and CEO.
