Adaptec, Inc. ( ADPT) (the “Company”) announced today that it has
completed the previously announced sale of the Company’s data storage
hardware and software business to PMC-Sierra, Inc. for approximately $34
million in cash. The disposition of the assets connected with such
business continues the Company’s plans to re-deploy its assets with a
goal to maximize stockholder value.
As part of the sale of the data storage hardware and software business
assets, PMC-Sierra, Inc. acquired Adaptec’s brand name, and as a result,
the Company is required under the agreement pursuant to which such
assets were sold to change its name within 90 days of the closing. The
Company intends to change its name to ADPT Corporation in the near
future.
About Adaptec
Adaptec, Inc. ( ADPT) has historically provided innovative data
center I/O solutions that protect, accelerate, optimize, and condition
data in today’s most demanding data center environments. Going forward,
the Company’s business is expected to consist primarily of capital
redeployment and identification of new, profitable business operations
in which it can utilize its existing working capital and maximize the
use of the Company’s net operating losses. More information is available
at the Company’s new web site: www.adptco.com.
Safe Harbor Statement
This news release includes forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities and Exchange Act of 1934, as amended.
Forward-looking statements such as “will,” “believe,” “are projected to
be” and similar expressions are statements regarding future events or
the future performance of Adaptec, and include statements regarding
projected operating results. These forward-looking statements are based
on current expectations, forecasts and assumptions and involve a number
of risks and uncertainties that could cause actual results to differ
materially from those anticipated by these forward-looking statements.
These risks include, but are not limited to: the Company’s ability to
deploy its capital in a manner that maximizes stockholder value; the
ability to reduce our operating costs, the ability to identify suitable
acquisition candidates or business and investment opportunities; adverse
changes to our operating results and financial condition resulting from
the disposition of the data storage business assets; the incurrence of
significant restructuring expenses in connection with our current
restructuring plan; the possibility of being deemed an investment
company under the Investment Company Act of 1940, as amended, which may
make it difficult for us to complete future business combinations or
acquisitions; possible recognition of future impairment losses; and the
inability to realize the benefits of our net operating losses. For a
more complete discussion of risks related to our business, reference is
made to the section titled “Risk Factors” included in our Annual Report
on Form 10-K for the fiscal year ended March 31, 2010 on file with the
Securities and Exchange Commission. Except as required by law, we assume
no obligation to update any forward-looking information that is included
in this release.
Adaptec is a registered trademark. Other company names are trademarks or
registered trademarks of their respective owners. Adaptec disclaims any
and all rights in these trademarks.
