Credence Systems Corporation (NASDAQ: CMOS), aprovider of test solutions for the worldwide consumer semiconductorindustry, announced today that it has entered into a definitive agreementto sell its operations in Amerang, Germany, Credence Systems GmbH, toAdvantest Corporation.
"In order to achieve our profitability goals, we evaluated all of ouroperations for opportunities to reduce our logistical footprint and furtheroptimize operational efficiencies. As a stand-alone entity, we sought abuyer for our Amerang operations that would protect our customers'interests by continuing to support their automotive products. Advantest hasmade this commitment to us and we believe that we have achieved anexcellent outcome for our automotive customers while avoiding extensiverestructuring," said Lavi Lev, president and CEO of Credence. "Credencewill continue to participate in the automotive market with our currentproduct lines as we actively address the broad and diverse consumer marketsthat also include wireless, entertainment and computing with products thatdeliver the best value to our customers."
Pursuant to the terms of the Agreement, Advantest Corporation will purchasethe operation for US$5.0 million. In connection with the transaction,employees, manufacturing and key infrastructure will remain in Amerang butbe owned by Advantest, who will take control of the operations' assets,including inventories, spares, plant property and equipment, and associatedliabilities. Advantest, through the purchase of Credence Systems GmbH, willalso assume all of Credence Systems GmbH's contractual obligations withautomotive customers including those obligations in connection with theCredence Falcon, Piranha and other legacy automotive product lines.
The transaction is anticipated to close on or before August 31st, 2008.There is no expected impact to Credence's guidance for fiscal Q3, otherthan a one-time non-cash impairment charge. The company will discuss itsongoing business model as a result of this sale in its third quarter fiscal2008 conference call, scheduled for August 28, 2008.
About Credence
Credence Systems Corporation is a global provider of automated testequipment (ATE) solutions to the high growth, consumer semiconductorindustry. Credence is committed to deliver the highest standards of value-- an optimal combination of technology, turn-around time, reliability,ease of use, service and support -- to every customer, which enablesimportant cost and performance advantages for integrated devicemanufacturers (IDMs), wafer foundries, outsource assembly and test (OSAT)suppliers and fabless chip companies worldwide. An ISO 9001-certifiedcompany with a presence in 20 countries, Credence is headquartered inMilpitas, California.
