SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
April 7, 1998
(Date of earliest event reported)
UNITRODE CORPORATION
(Exact name of Registrant as specified in its charter)
Maryland 1-5609 04-2271188
(State of (Commission File No.) (IRS Employer
Incorporation) Identification No.)
7 Continental Boulevard, Merrimack, NH 03054
(Address of principal executive offices, including zip code)
(603) 424-2410
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS
On April 7, 1998, Unitrode Corporation (the "Registrant")
issued a press release relating to the anticipated results for
the first quarter ended May 2, 1998. A copy of the press release
is attached as an exhibit hereto and is hereby incorporated by
reference herein.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
AND EXHIBITS
EXHIBITS
99.1 Press Release dated April 7, 1998
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
UNITRODE CORPORATION
Date: April 7, 1998 By:/s/ Allan R. Campbell
---------------------
Name: Allan R. Campbell
Title: Senior Vice President,
General Counsel and Secretary
EXHIBIT INDEX
Exhibit Description Sequentially
Numbered Page
99.1 Press Release dated April 7,
1998
[UNITRODE LETTERHEAD]
FOR FURTHER INFORMATION, PLEASE CONTACT:
S. KELLEY MACDONALD, VICE PRESIDENT,
CORPORATE COMMUNICATIONS,
UNITRODE CORPORATION
7 CONTINENTAL BOULEVARD
MERRIMACK, NH 03054
(603) 429-8767
E-MAIL: [email protected]
UNITRODE SEES WEAKER DEMAND IN Q1; EXPECTS $5-7 MILLION PRE-TAX CHARGE
Merrimack, NH (April 7, 1998) -- Unitrode Corporation (NYSE -- UTR), a
manufacturer of analog/linear and mixed-signal integrated circuits, today
announced that based on weaker-than-expected bookings, it currently
anticipates revenues in the first quarter ended May 2, 1998, to be about
30% to 35% lower than the $40.8 million level in the same period of last
year, and estimates net income to be between $2 million and $3 million
before anticipated pre-tax charges of between $5 million and $7 million as
outlined below. The results will be available for release in mid-May.
In prior public announcements, Unitrode had cited continued weakness in the
disk drive market as negatively impacting its business. That weakness is
continuing. In addition, Unitrode is also experiencing weakness in other
served markets similar to that which has been reported by a number of other
semiconductor companies. The Company believes that the level of some of
its customers' inventories continues to be high and that customers will
work off these inventories before making significant new purchasing
commitments. Several customers have unexpectedly re-scheduled or canceled
orders due for shipment within the quarter, and turns business (orders that
are booked and shipped within the quarter) is lower than anticipated.
Unitrode expects to take additional pre-tax charges of between $5 million
and $7 million which would be used for the re-alignment of wafer
fabrication capabilities to reflect the decline in demand for 4" bipolar
wafers and the conversion from 5" BiCMOS to 6" BiCMOS wafers, the writedown
of inventory and equipment, and other costs required to size the business
to the reduced level of demand, as well as to account for charges
associated with the pending merger of BENCHMARQ Microelectronics, Inc.
(NASDAQ--BMRQ) which was announced on March 2, 1998.
BENCHMARQ has recently announced that due to soft market conditions, it is
expecting a sequential decline in revenues for its quarter ending in March.
However, in announcing the merger, both companies indicated that the merger
should accelerate the new company's penetration of the portable power
market and increase market opportunities in other growing target markets.
Commenting on the announcement, Robert J. Richardson, President and Chief
Executive Officer of Unitrode, said, "It may take one or two more quarters
to work through the present market conditions, but I am convinced that the
markets served by Unitrode and BENCHMARQ continue to offer solid long-term
growth opportunities and both companies have excellent products for these
markets."
This press release contains forward-looking information and is made
pursuant to the safe-harbor provisions of the Private Securities Litigation
Reform Act of 1995. Except for historical information, the matters set
forth in this release are forward-looking and involve risk and uncertainty,
including such factors, among others, as the ability to book and ship
within the quarter, the demand for semiconductors generally and the
specific demand for the Company's products, production capacity
constraints, the timely introduction of new processes and products, and
specifically the qualification and start-up of the Company's new wafer
fabrication facility, the impact of competitive products and prices,
unsettled conditions in the hard disk drive market, the difficulties of
integrating the operations of Unitrode and BENCHMARQ and other risk factors
described in the Company's filings with the Securities and Exchange
Commission.
Unitrode designs and manufactures analog/linear and mixed-signal integrated
circuits, principally to perform power management, motion control, and
interface functions. Its products are sold throughout the world for a
variety of computer, tele- and data-communications, defense/aerospace,
industrial, and automotive applications. Further information about
Unitrode may be found at the Company's homepage site:
http://www.unitrode.com.
(END)
