Santa Clara, Calif. - Inphi Corporation (NYSE: IPHI), a leading provider of high-speed, mixed-signal semiconductor solutions for the communications, data center and computing markets, today announced a definitive agreement to sell its memory product business to Rambus Inc. (NASDAQ: RMBS) for $90 million in cash inclusive of a 12.5 percent escrow. The sale is currently expected to close in the first half of Q3, the company said.
The transaction will enable Inphi to focus its attention on the growing opportunity in the communications markets. As the company continues to build on its leadership position in high-speed connectivity for long-haul, metro, intra- and inter-data center applications, Inphi is confident that by streamlining its business product development and go-to-market efforts, growth will accelerate. Specifically, Inphi will focus on expansion in the metro-optical market, inter data center connects and its PAM product lines inside the data center.
"The strategic divestiture of our memory business allows Inphi to focus on and increase investments in our communications business," said Ford Tamer, president and CEO of Inphi. "It is a win-win for our employees, customers, partners and stockholders. We are planning to double down on our product roadmap for long-haul, metro, inter-data center and intra-data center customers. As a result, we expect the higher rate of revenue growth for our core communications will become more apparent, and we expect to report higher gross and operating margins and a stronger balance sheet. In 2016, we expect a neutral to slightly accretive impact to earnings per share."
Inphi Corporation will host a conference call on Thursday, June 30, 2016, at 5:30 am Pacific time to discuss the details of the transaction. To participate via telephone, the toll free dial-in number is 844-459-2451. International callers should dial 765-507-2591; participant passcode: 39241723. Please dial-in 10 minutes prior to the scheduled conference call time. The replay of the conference call will be archived on Inphi's website at www.inphi.com.
Inphi, the Inphi logo and Think fast are registered trademarks of Inphi Corporation. All other trademarks used herein are the property of their respective owners.
Inphi Corporation is a leading provider of high-speed, mixed signal semiconductor solutions for the communications, data center and computing markets. Inphi's end-to-end data transport platform delivers high signal integrity at leading-edge data speeds, addressing performance and bandwidth bottlenecks in networks for long haul, metro and inter data center applications. Inphi's solutions minimize latency in computing environments and enable the rollout of next-generation communications infrastructure. Inphi's solutions provide a vital interface between analog signals and digital information in high-performance systems, such as telecommunications transport systems, enterprise networking equipment, enterprise and data center servers. To learn more about Inphi, visit www.inphi.com.