Updated from 2:45 p.m. EST
(SIRF) shares rocketed Tuesday following an announcement that SiRF would merge with British chipmaker
CSR, in an all-stock deal worth $136 million.
CSR is buying SiRF to more firmly establish itself in the GPS technology space. Under the terms of the deal, each SiRF holder will receive 0.741 CSR shares.
After rising nearly 60% during Tuesday trading, SiRF shares settled some to close up 55.6% at $1.68.
SiRF also reported earnings Tuesday. Among the highlights for the fourth quarter of fiscal 2008:
Net revenue was $47.3 million, down 52.9% from $100.4 million reported in the fourth quarter of 2007.
Gross margin 40.6%, down from 48.1% in 2007.
Net loss $17.4 million, or 28 cents per diluted share. Net income for the year-ago quarter was $0.7 million.
For full-year fiscal 2008:
Net revenuewas $232.5 million, down 29.4% from $329.4 million in fiscal 2007.
Net loss was $399 million, compared with a loss of $10.4 million in fiscal 2007.
"Together with CSR, we can accelerate our strategic plans, realize growth opportunities faster than either company could on its own, diversify our revenues and capitalize on market opportunities to create value for shareholders," said Chairman and interim CEO Dado P. Banatao in a statement.
According to the statement from SiRF, which competes with
(BRCM - Get Report)
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statement announcing the merger: "Customers of the combined company include four of the top five handset manufacturers, the top five personal navigation device makers, the top two auto-telematics suppliers, and other leading auto and consumer electronics providers. CSR and SiRF will have design and customer support centers located around the world."
Some SiRF wireless/handset clients have included
, some of which they already shared with CSR. CSR customers have included
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Research In Motion
, and in the automotive space,
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