Qualcomm to Buy Berkana

Qualcomm has acquired Berkana Wireless, a Silicon Valley-based fabless semiconductor company

January 5, 2006

2 Min Read

SAN DIEGO -- QUALCOMM Incorporated (Nasdaq: QCOM - News), a leading developer and innovator of Code Division Multiple Access (CDMA) and other advanced wireless technologies, today announced that the Company has acquired Berkana Wireless Inc., a Silicon Valley-based fabless semiconductor company. Berkana is a provider of complementary metal oxide semiconductor (CMOS) radio frequency integrated circuits (RFICs) to the wireless industry. The addition of Berkana's proven RF CMOS intellectual property, design portfolio and engineering resources, as well as its cellular systems expertise, reinforces QUALCOMM's leadership in the RFIC industry* and will help the Company continue to deliver industry-leading CDMA2000® and WCDMA (UMTS) RF solutions to its customers and the growing number of 3G subscribers around the world.

"QUALCOMM and Berkana share a common vision, with complementary products, processes and roadmaps. Our aligned strategies make this decision a logical and mutually beneficial one," said Dr. Sanjay K. Jha, president of QUALCOMM CDMA Technologies. "We are continually seeking ways to strengthen and accelerate our offerings, and this acquisition reinforces our leadership in RF in the 3G wireless market, enabling us to more quickly deliver new highly integrated RF CMOS solutions to our customers."

"Our joining with QUALCOMM is a result of our shared goals to advance 3G wireless deployment and adoption worldwide," said Sam Nakib, president and chief executive officer of Berkana Wireless Inc. "The combination of our RF CMOS/mixed-signal engineering expertise and product portfolio with QUALCOMM's resources, industry experience, and widely recognized leadership promise new possibilities for the wireless space and the proliferation of 3G technologies."

QUALCOMM will pay approximately $56 million in cash for Berkana. The Company expects approximately $0.005 dilution to pro forma earnings per share in its fiscal year ending September 2006. Additionally, QUALCOMM expects one-time charges of approximately $10 million, principally related to in-process research and development, upon closing. The amounts above are estimates and are subject to change.

Qualcomm Inc. (Nasdaq: QCOM)

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