(Source: PRNewswire)
MILPITAS, Calif., Aug. 10 /PRNewswire-FirstCall/ -- California Micro Devices (Nasdaq: CAMD) ("CMD" or "The Company") today announced that the CMD Board of Directors has unanimously voted to redeem the rights accompanying the company's outstanding common stock, effective August 8, 2009, for $0.001 per right. Stockholders of record on that date do not need to take any further action to receive the redemption price which will paid in the next sixty days.
As part of its ongoing communications with CMD stockholders, CMD has discussed the concerns of certain of its major stockholders regarding the rights plan, and has previously considered redeeming the plan or submitting it to a stockholder vote no later than the Company's 2010 stockholder meeting, and submitting any subsequent rights plan to stockholder vote. As a result of more recent communications with stockholders, the Board has decided to accelerate the elimination of the rights plan. The Board further has adopted a policy to submit any future rights plan to a stockholder vote.
"CMD's Board and management team have been vigilantly focused on managing through this unprecedented recession and returning to profitability," said Wade Meyercord, Chairman of the CMD Board. "We have acted decisively to reduce cost, discontinue a product line that didn't meet expectations and align our resources to seize the considerable opportunity we see in our core protection business. Specifically, over the past year we have reduced our estimated operating expense to approximately $5.1 million this quarter from $6.2 million in the September quarter last year. Last week we announced additional actions, including stopping investment in a product line which has not met expectations, that we expect will further reduce our estimated operating expense to approximately $4 million as part of our efforts to return to positive operating cash flow in the December quarter. These actions together with our recent appointment of Jon Castor as an independent director, underscore this board's commitment to good corporate governance and increasing stockholder value. We are in regular discussions with our major stockholders and appreciate their views on the important matters affecting CMD."
About California Micro Devices Corporation
California Micro Devices Corporation is a leading supplier of application specific analog and mixed signal semiconductor products for the mobile handset, high brightness LED (HBLED), digital consumer electronics and personal computer markets. Key product lines include protection devices for mobile handsets, HBLEDs, digital consumer electronics products and personal computers and mixed signal ICs for mobile handset displays.
