HAMILTON, Bermuda, July 24 /PRNewswire/ --
3Dlabs(R), Inc. Ltd. (Nasdaq: TDDD) today announced that it has completed its
acquisition of the assets of the Intense3D(R) operation of
Intergraph(R) Corporation (Nasdaq: INGR).
(Photo: http://www.newscom.com/cgi-bin/prnh/19990623/TDDDLOGO)
3Dlabs will be exhibiting both its Oxygen(R) and newly acquired
Wildcat(TM) professional graphics accelerators at the SIGGRAPH 2000 exhibition
at the Ernest Morial Convention Center in New Orleans, LA, from July 25th-27th
in booths 1421 and 3029.
"This acquisition advances 3Dlabs' growth strategy with the addition of
market leading high-end and very high-end professional graphics products and
provides 3Dlabs with the resources of an additional proven and respected
development team. Given the complementary nature of our product lines and
channels, OEM and geographic strengths and that both companies are shipping
successful product lines, we anticipate the acquisition to substantially
increase our expected revenues in the second half of 2000," stated Osman Kent,
president and CEO of 3Dlabs.
As previously announced, the acquisition was expected to close during the
2nd quarter of 2000 and be accretive to results in the 3rd quarter. However,
due to a number of factors, the acquisition did not close until the
3rd quarter. Accordingly, 3Dlabs will incur certain one-time acquisition
related charges in the 3rd quarter and the acquisition is now expected to be
accretive on an earnings before goodwill (EBG) basis in future quarters.
"3Dlabs and Intense3D have similar visions for growth in the graphics
industry. We believe the integration of these two market leaders will allow
the combined company to continue its leadership in the professional graphics
market segment. Furthermore, the addition of new engineering resources will
enable 3Dlabs to enhance its development efforts focused on providing leading
edge graphics technology in growth markets on both the PC and on emerging
appliance platforms," concluded Kent.
Under the terms of the acquisition agreement, 3Dlabs has issued
3,588,060 common shares to Intergraph as initial consideration for the
acquired assets, with an earn-out provision totaling up to an additional
$25 million, payable in stock and/or cash at 3Dlabs' option. The earn-out
will be based on certain performance metrics for the Intense3D operations for
the remainder of fiscal year 2000.
About 3Dlabs
Founded in 1994, 3Dlabs is a leading supplier of integrated hardware and
software graphics accelerator solutions for workstations and design
professionals. 3Dlabs develops silicon, boards and software drivers to create
products that effectively meet the performance and quality needs of users who
rely on graphics for their productivity. 3Dlabs sells its award-winning
Oxygen and Wildcat products to leading system OEMs including Compaq, Dell,
Fujitsu, Fujitsu-Siemens, Gateway, Hewlett-Packard, IBM, Intergraph Computer
Systems, Hitachi, NEC and Sun Microsystems, through an international
distributor and reseller network and directly to end-users at 3Dlabs' online
store. The performance-leading Wildcat and high volume Oxygen accelerator
families target complementary segments of the Computer Aided Design (CAD),
Digital Content Creation (DCC), geophysical, medical and visual simulation
markets, resulting in the broadest range of professional graphics products in
the industry today. 3Dlabs has operations in Alabama, California, Colorado,
Massachusetts, Texas, Washington, Germany, Japan and the United Kingdom. For
more information, please visit http://www.3dlabs.com.
Forward Looking Statements
This press release includes forward-looking statements about the
expectation that the acquisition will be accretive on an earnings before
goodwill basis in future quarters and the anticipation that the acquisition
will substantially increase expected revenues in the second half of 2000.
These statements are subject to risks and uncertainties which may cause future
financial results to differ materially. These risks and uncertainties include
the ability of 3Dlabs to successfully and timely integrate the operations of
Intense3D; the potential competitive overlap of Oxygen and Wildcat products;
possible accounting adjustments made to financial results in future quarters;
the ability and willingness of 3Dlabs' manufacturing partners to produce
Wildcat products in a timely and cost-effective manner and in sufficient
quantities; the ability of 3Dlabs' suppliers to provide adequate components
and materials for 3Dlabs' products in a timely manner; the ability of 3Dlabs
to obtain and keep design wins for these products; the ability of 3Dlabs'
products to adequately meet the price/performance requirements of its
customers; and the success of 3Dlabs' customers in achieving sustained demand
for systems incorporating 3Dlabs' products.
NOTE: 3Dlabs, Oxygen, Intense3D, Wildcat and Permedia are trademarks or
registered trademarks of 3Dlabs Ltd., 3Dlabs Inc. Ltd., or 3Dlabs Inc. in the
United States and/or other countries. Intergraph is a registered trademark of
Intergraph Corporation. All other trademarks are acknowledged and recognized.
SOURCE 3DLabs, Inc.
 back to top
Related links:
http://www.3dlabs.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19990623/TDDDLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 201-369-3467
CONTACT:
Hildy Shandell, Vice President, Finance &
CFO, of 3Dlabs, Inc., 408-530-4718, or hildy.shandell@3dlabs.com;
or Lillian Armstrong, lillian@lhai-sf.com, or Kris Otridge,
415-433-3777, or media, Elissa Grabowski, 212-838-3777, or
elissa@lhai.com, all of Lippert-Heilshorn & Assoc., for 3Dlabs,
Inc.
|
