News

SMSC and Analog Devices Settle Litigation

January 30, 2005 by Jeff Shepard

SMSC (Hauppauge, NY) announced that it has settled a patent infringement dispute with Analog Devices Inc. (ADI, Wilmington, MA), agreeing to send ADI a one-time payment of $6 million. In return, ADI has granted SMSC a royalty-bearing license to the patents in question. Both parties have agreed to dismiss all claims against each other.

SMSC stated that it does not expect royalties under the license to have a material impact on future results of operations. However, the one-time payment to ADI will reduce SMSC’s net income per share by approximately $0.20 in its fiscal fourth quarter, which ends February 28, 2005.