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Mindspeed Technologies, Inc.: Mindspeed(R) Announces Closing of $9.7 Million Common Stock Offering

^{Published on 2009-08-22 13:32:29, Last Modified on 2009-08-22 13:32:30 - Market Wire}
 

NEWPORT BEACH, CA--(Marketwire - August 19, 2009) - Mindspeed Technologies, Inc. (NASDAQ: [ MSPD ]), a leading supplier of semiconductor solutions for network infrastructure applications, today announced the closing of its previously disclosed public offering of 4.75 million shares of common stock, at a price of $2.05 per share. Gross proceeds from the offering are approximately $9.7 million before deducting underwriting discounts and commissions and other expenses. The net proceeds to the company after deducting underwriting discounts and commissions and estimated offering expenses are approximately $8.8 million.

The company intends to apply the full amount of the net proceeds from this offering to the $10.5 million outstanding balance of its 3.75 percent Convertible Senior Notes due in November 2009. However, the company could also use a portion of the net proceeds from this offering for general corporate purposes, including capital expenditures.

"We are pleased with the results of our public offering, which gives us additional financial flexibility to address the maturity of convertible debt in November 2009," said Raouf Halim, chief executive officer of Mindspeed. "We believe strengthening our balance sheet will be viewed positively by all of our stakeholders."

The offering was made under the company's shelf registration statement that was filed with and declared effective by the Securities and Exchange Commission (SEC). The offering was made solely by means of a written prospectus supplement and accompanying prospectus. This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under securities laws of any such state or jurisdiction. Printed copies of the prospectus supplement relating to the offering may be obtained at the SEC website at [ http://www.sec.gov ] or from the offices of Cowen and Company, LLC c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Attn: Prospectus Department (631) 254-7106.

About Mindspeed Technologies®

Mindspeed Technologies, Inc. designs, develops and sells semiconductor networking solutions for communications applications in enterprise, access, metropolitan and wide area networks.

The company's three key product families include high-performance analog transmission and switching solutions, multiservice access products designed to support voice and data services across wireline and wireless networks, and WAN communications solutions including T/E carrier physical-layer and link-layer devices as well as ATM/MPLS network processors.

Mindspeed's products are used in a wide variety of network infrastructure equipment, including voice and media gateways, high-speed routers, switches, access multiplexers, cross-connect systems, add-drop multiplexers and digital loop carrier equipment.

Safe Harbor Statement

This press release contains forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements related to the actual amount of net proceeds from the offering and the application of such proceeds. Actual results may differ materially from the results anticipated in these forward-looking statements. These forward-looking statements are based on management's current expectations, estimates, forecasts and projections about the company and are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated in the forward-looking statements. These risks and uncertainties include, but are not limited to: cash requirements and terms and availability of financing; future operating losses; worldwide political and economic uncertainties, and specific conditions in the markets we address; fluctuations in the price of our common stock and our operating results; loss of or diminished demand from one or more key customers or distributors; our ability to attract and retain qualified personnel; constraints in the supply of wafers and other product components from our third-party manufacturers; doing business internationally; pricing pressures and other competitive factors; successful development and introduction of new products; our ability to successfully and cost effectively establish and manage operations in foreign jurisdictions; industry consolidation; order and shipment uncertainty; our ability to obtain design wins and develop revenues from them; lengthy sales cycles; the expense of and our ability to defend our intellectual property against infringement claims by others; product defects and bugs; business acquisitions and investments; our ability to utilize our net operating loss carryforwards and certain other tax attributes; and methods, estimates and judgments we use in applying our accounting policies. Risks and uncertainties that could cause the company's actual results to differ from those set forth in any forward-looking statement are discussed in more detail under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's Quarterly Report on Form 10-Q for the quarter ended July 3, 2009, as well as similar disclosures in the company's subsequent SEC filings. Forward-looking statements contained in this press release are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.