Cirrus Logic Inc is acting on its declared plan to slim down to its core precision linear and mixed signal semiconductor business, and at the end of last week announced its plans to spin off its communications business as a separate company. About 35 employees will leave Cirius for the new company, to be called Basis Communications Inc. The firm represents something below 3% of Cirrus’ consolidated revenues, which works out at around $20m. Basis will acquire a portfolio of Cirrus communications products, which it will continue to manufacture and support. Cirrus will retain an equity position in the company, and promises to assure full customer support during the transition. Basis, which is expected to reveal more details about its product plans once the deal closes, probably before the end of the year, will take with it serial and parallel digital chips, parallel communications devices; and asynchronous transfer mode chips as used by networking equipment providers such as Cisco Systems Inc and Nortel Networks. There are new products under development, said Cirrus, which also said the sale would not affect its T1/E1 interface units, frameworks and controller businesses, which would stay within Cirrus itself. Cirrus said it is also looking to sell off its modem chip unit, and is currently in discussions with interested companies. Earlier this month, Cirrus agreed to sell its PC graphics division to Integrated Software and Devices Corp of San Jose, California. If we can’t be the number one or two player in a market, we will back out and build on our winners, Cirrus Logic spokesperson Tom Rigoli told ComputerWire.
