Semtech Completes Acquisition of Edge

Semtech Corp. in Newbury Park has completed its acquisition of Edge Semiconductor.

San Diego-based Edge Semiconductor provides analog and mixed-signal chips to the automated test equipment market, producing chips used by 15 of the world’s 20 largest such manufacturers.

Semtech, also a semiconductor manufacturer, issued 750,000 shares of its common stock in the tax-free pooling-of-interests transaction. As previously reported, Edge Semiconductor’s operating results are expected to be immediately beneficial to Semtech’s earnings.

Semtech said it expects to take a one-time charge for acquisition-related costs of about $1.2 million, or $800,000 after taxes, in the third quarter.

“With the acquisition of Edge Semiconductor, we have the opportunity to increase our growth rate,” said John D. Poe, Semtech president and chief executive officer. “Edge’s revenues for Semtech’s fiscal year 1998 are on track to exceed $12 million, which is nearly double their previous year’s revenues. We expect Edge’s business to be one of our fastest-growing segments.”