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AMCC appears to have a winner with JNI deal: Gateway announces 450 layoffs with closure of Virginia assembly plant.

Publication: San Diego Business Journal
Publication Date: 08-SEP-03 		Format: Online - approximately 987 words
Delivery: Immediate Online Access
Full Article Title: AMCC appears to have a winner with JNI deal: Gateway announces 450 layoffs with closure of Virginia assembly plant.(Applied Micro Circuits Corp.)

Article Excerpt
Applied Micro Circuits Corp.'s acquisition of JNI Corp. proves that two companies with declining sales and losses can still make a deal.

AMCC is paying $7 per share for each JNI share, a 21 percent premium from Aug. 28, the day the purchase was announced, making the total purchase for about $190 million. Since JNI has some $90 million in cash on its balance sheet, it sounds like a winner for AMCC.

AMCC and JNI are two locally based high-techs that have been struggling for years with declining sales and net losses. AMCC makes integrated circuits used by the makers of wide area networks. Its biggest customers are large networking equipment makers such as Cisco Systems and Nortel Networks. As those customers tanked, so did suppliers like AMCC. For its most recent fiscal year that ended in March, revenues were $101 million, down 34 percent from the...

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