Jazz “exploring strategic alternatives”

Feb. 14, 2008 – Specialty foundry Jazz Technologies says it has retained UBS Securities as a financial advisor to help it review strategic alternatives, typically industry code-speak meaning possible sale of pieces or all the company.

The announcement comes after Jazz posted a widening net loss in 4Q07 ($4.6B vs. $3.0B in 3Q), while sales were up about 4.5% to $54.8M, at the high range of estimates. 1Q08 sales are seen dipping again to $50-$51M , with positive EBITDA and free cash flow, according to Paul Pittman, CFO/CAO, in a statement.

One glaring figure from Jazz’s balance sheet: cash vs. debt. Cash/cash equivalents as of Dec. 28 were $10.6M — vs. total debt of $141.2 million, $133.2M of which were those convertible senior notes, plus $8M drawn against the line of credit.

POST A COMMENT

Easily post a comment below using your Linkedin, Twitter, Google or Facebook account. Comments won't automatically be posted to your social media accounts unless you select to share.