Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of Code Division Multiple Access (CDMA) and other advanced wireless technologies, today announced that the Company has acquired Berkana Wireless Inc., a Silicon Valley-based fabless semiconductor company. Berkana is a provider of complementary metal oxide semiconductor (CMOS) radio frequency integrated circuits (RFICs) to the wireless industry. The addition of Berkana's proven RF CMOS intellectual property, design portfolio and engineering resources, as well as its cellular systems expertise, reinforces Qualcomm's leadership in the RFIC industry* and will help the Company continue to deliver industry-leading CDMA2000® and WCDMA (UMTS) RF solutions to its customers and the growing number of 3G subscribers around the world.
"Qualcomm and Berkana share a common vision, with complementary products, processes and roadmaps. Our aligned strategies make this decision a logical and mutually beneficial one," said Dr. Sanjay K. Jha, president of Qualcomm CDMA Technologies. "We are continually seeking ways to strengthen and accelerate our offerings, and this acquisition reinforces our leadership in RF in the 3G wireless market, enabling us to more quickly deliver new highly integrated RF CMOS solutions to our customers."
"Our joining with Qualcomm is a result of our shared goals to advance 3G wireless deployment and adoption worldwide," said Sam Nakib, president and chief executive officer of Berkana Wireless Inc. "The combination of our RF CMOS/mixed-signal engineering expertise and product portfolio with Qualcomm's resources, industry experience, and widely recognized leadership promise new possibilities for the wireless space and the proliferation of 3G technologies."
Qualcomm will pay approximately $56 million in cash for Berkana. The Company expects approximately $0.005 dilution to pro forma earnings per share in its fiscal year ending September 2006. Additionally, Qualcomm expects one-time charges of approximately $10 million, principally related to in-process research and development, upon closing. The amounts above are estimates and are subject to change.
Founded in 2001 by Dr. Beomsup Kim and Dr. Cormac Conroy, Berkana Wireless Inc. is a fabless semiconductor company that develops highly integrated RF/ mixed-signal integrated circuits for cellular and other wireless applications using proprietary RF CMOS techniques. Berkana's vision is to deliver dramatic cost, power and space reductions to the cellular phone radio function, and to enable next-generation multi-mode handsets and wireless terminals. More information about Berkana can be found at www.berkanawireless.com
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 500 Index and is a 2005 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Company's ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 25, 2005.