Zilog to review strategic alternatives

By Jennifer Chiou

New York, July 24 - Zilog, Inc. announced that it is evaluating a broad range of strategic alternatives to enhance stockholder value.

The company noted that it has retained Oppenheimer & Co. Inc. as its financial adviser.

Zilog added that it does not expect to publicly disclose any further developments unless and until its board has approved a transaction or other strategic alternative.

The company also said that it expects to report a sequential growth in sales of 5% to 8%, consistent with its previously announced guidance from a May earnings call.

"We are pleased with the progress we are making towards achieving our updated three year strategic plan that we shared with investors in May. We are beginning to see the translation of design win efforts to revenues and top line growth," Darin Billerbeck, Zilog president and chief executive officer, said in a news release.

Zilog said it expects to release its financial results for its 2009 fiscal year first quarter ended June 28 on July 31.

On July 7, Riley Investment Partners Master Fund, LP, a 7.8% shareholder, notified Zilog that it would seek to elect Riley principal John Ahn to Zilog's board of directors as a class III director as well as amend Zilog's bylaws to allow for stockholders to fill a vacancy created by stockholder expansion of the board of directors or stockholder removal of directors.

On Feb. 6, Riley said it was disappointed that Zilog rejected Universal Electronics Inc.'s bid to acquire the company in a deal that Riley, a 6.8% shareholder, would finance.

As previously noted, Zilog turned down Universal Electronics' unsolicited Jan. 18 offer of $4.50 cash per share.

Based in San Jose, Calif., Zilog is a supplier of eight-, 16- and 32-bit microcontroller and microprocessor system-on-a-chip products.

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