Boston, MA 10/23/2013 (wallstreetpr) – The atomic watchmaker, Symmetricom, Inc. (NASDAQ:SYMM) based in San Jose has been acquired for $230 million by Microsemi Corp. On Monday, October 21, the company announced its first quarter results that ended on September 29 for year 2014. It has posted revenues of $48 million which is $1.6 lesser than Q1 2013 for the company and thus a net loss of $0.02 per share. Apart from the revenues the company had generated around $4.3 million net cash as a result of operating activities. This was in turn used as investment or purchase of property and equipment of the company. As a result free cash flow to the tune of $2.7 million was generated.
Liz Fetter, Chief Executive Officer of Symmetricom, was of the view that the company had achieved the goal that it had set for itself and had continuously worked for it this quarter.
No loss for Investors
Along with the announcement of the quarterly results the company also announced that it was going to be taken over by Microsemi Corp., a chip maker. This hardware technology giant was willing to part with $230 million in order to take over Symmetricom that paid the investors a value sum of $7.18 per share. In fact the stock performance on Tuesday indicated that the investors were expecting more than the 50% premium that the buyer was offering.
James Peterson, Chief Executive Officer, Microsemi Corp. was optimistic about the deal and said that this collaboration is going to increase its profits to almost $0.22 to $0.25 EPS in the next quarter. Elizabeth Fetter, CEO, Symmetricom, also was optimistic and believed that this buyer is the right firm to harness the capabilities of Symmetricom, especially its chip-scale atomic clock (CSAC) technology.
Law firms to represent the shareholders of Symmetricom
Some law firms like Pomrantz are investigating the appropriateness of the transaction and are of the view that the shareholders are not really going to be benefitted and need to take the company to court.
