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Zarlink Semiconductor, Inc. (ZL.TO) Sells Optical Products Segment and Focuses on Network Timing, Medical Wireless and Line Circuit Efforts

|Includes: Zarlink Semicond Pfd (ZLKKF)

Zarlink Semiconductor,, the developer of world-class mixed-signal chips for a variety of applications with core proficiencies in Synchronous Ethernet timing chips for wireless/wired networks, and line circuits for high-quality voice networks, telecom networking, voice interface platforms and ultra-low power radio technology for wireless medical telemetry, announced the sale of its Optical Products group today to Tyco Electronics (NYSE:TEL) for some $15M.

President and CEO of Zarlink, Kirk Mandy, explained the sale as consistent with a strategic focus toward markets the Company can dominate, governed by a drive toward systemic efficiency improvements – noting that the transaction frees up development and sales resources for direct application to “network timing, medical wireless and line circuit” concerns in an effort to obtain an even larger footprint in these markets, which are characterized by favorable strategic partnering and revenue growth opportunities.

As carriers migrate to higher-bandwidth architecture, including smartphone apps, the Company’s timing product business is set to explode, led by rapidly growing consumer demand and innovative new applications in optical transport.

Network timing products assist carriers in delivering time-sensitive data via packet-based networks, and the Company’s Timing-over-Packet, Synchronous Ethernet and ClockCenter (for optical transport networks) solutions are uniquely-positioned offerings which address the multi-faceted demands of this increasingly complicated market.

On the medical front, Zarlink is flanked by established relationships with medical device manufacturing industry powerhouses and retains a strong hand in the wirelessly enabled implantable device category via their ultra-low power, standards-compliant radios.

Wireless medical chips and modules facilitate a whole new breed of medicine, which relies on real-time monitoring of implantable cardioverter-defibrillators (ICDs) and other biological process sensing equipment like pacemakers.

The high-quality VoIP line circuit segment is also turning solid profits, forming a sound basis for company-wide improvements.

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