Tuesday, July 17, 2012

CSR (Nasdaq: CSRE) Selling Mobile Phone Chip Unit To Samsung; Stock Soars

CSR (Nasdaq: CSRE) Selling Mobile Phone Chip Unit To Samsung; Stock SoarsOrlando, FL 7/17/12 (StreetBeat) – Chip Maker CSR Plc (Nasdaq: CSRE) announced today its agreement to sell its development operations in handset chips to Samsung for $310 million in cash. This deal includes both the shift of 310 people and 21 U.S. patents to Samsung, which will be licensed back to CSR on a royalty free bases in perpetuity.

The deal, expected to close in Q4, will accretive to EPS in 2013. It will give CSR net proceeds at about $209 million after taxes, restructuring costs and other transaction-related expenses. Samsung will take a 4.9% equity stake in CSR with a $34.4 mil investment.

CSR said the deal will “will transform the profile of CSR’s business and its growth prospects, accelerate its strategy of focusing on high growth markets where it has leadership positions and the ability to deliver differentiated platforms and products, and strengthen earnings per share.”

Five high growth markets CSR will focus on includes Voice & Music, Automotive Infotainment, Indoors Location, Imaging and Bluetooth.

Meanwhile, CSR also said that it expects to report Q2 revenue at the top end of its previous guidance range of $260 million to $280 million. And the company said it is on track to hit consensus revenue estimates for the full year.

CSRE in U.S. trading is up $4.67, or 34.4%, to $18.23.

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