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Weitek Announces Agreement With Rockwell
Weitek, San Jose, California - Dec 12, 1996
Weitek Corporation (OTC Bulletin Board: WWTK) today announced the signing of an asset purchase agreement with Rockwell
Semiconductor Systems. Pursuant to the agreement, Rockwell will pay approximately $3 million to acquire certain Weitek
assets and a non-exclusive license to certain Weitek technology. The purchase price is subject to adjustment based on
a number of factors, including Weitek's ability to transfer certain assets. Rockwell has also extended employment offers
to approximately 20 engineers and other employees of Weitek. In connection with the agreement, Weitek has made a
voluntary filing under Chapter 11 of the U.S. Bankruptcy Code. The asset transfer is subject to prior approval of the
Bankruptcy Court. Until the Bankruptcy Court approves the asset transfer, Weitek will provide certain contract
engineering services to Rockwell. Weitek is expected to seek interim permission from the Bankruptcy Court to permit
Rockwell to use Weitek's San Jose, California design facilities and hire the Weitek engineers and other employees sought
by Rockwell.
Richard Bohnet, President and Chief Executive Officer of Weitek commented that "the agreement with Rockwell is the
culmination of a multi-year effort to find a strategic buyer for Weitek's assets. We are very pleased with the Rockwell
agreement. We will continue to seek buyers for the Weitek assets not being purchased by Rockwell, including Weitek's
intellectual property portfolio. We believe that the Rockwell agreement, together with an orderly disposition of other
assets, provides Weitek with the best opportunity to satisfy its obligations to creditors and return some assets to
shareholders." Weitek, which has sustained substantial operating losses during the past several years, will attempt to
sell those assets not being acquired by Rockwell through the bankruptcy proceeding, and then expects to wind up its
affairs. Creditors and shareholders of Weitek will receive additional information regarding the bankruptcy proceedings
by mail.
This press release contains forward looking statements within the meaning of the Securities Exchange Act of 1934, as
amended. Actual results may differ materially from those described herein. Factors which may cause such results to differ
include the following:
(i) the agreement and other arrangements with Rockwell are subject to the approval of the Bankruptcy Court, and there can
be no assurance that the agreement and other arrangements will be approved by such court on the terms agreed by the parties
or on any other terms;
(ii) the agreement with Rockwell contains customary conditions to closing which, if not satisfied, would permit Rockwell
and Weitek to terminate the agreement and other arrangements;
(iii) there can be no assurance that Weitek will be successful in locating buyers for the remaining assets, and
(iv) while Weitek expects to have assets available for distribution to shareholders after satisfying all senior claims,
there can be no assurance as to the amount, if any, which will be available for distribution to Weitek shareholders after
remaining assets are disposed of and senior claims are satisfied.
SOURCE Weitek Corp. /CONTACT: Donald V. Carloni, Investor Relations of Weitek Corporation, 408-526-0300/
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