Tech Biz Recap: RIM Shares Halted, Cirrus Logic Spikes
Sprint (NYSE:S) obtains a $1 billion credit facility that will enable it to buy equipment from Ericsson (NASDAQ:ERIC) for its 4 gigabyte LTE intro. In another matter, Sprint announces that it intends to redeem $1 billion worth of 6.875 percent notes due in fourth quarter 2013; the company posted $14.7 billion in net debt on its balance sheet as of March 31.
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Double trouble for Research In Motion (NASDAQ:RIMM) as it not only gets ready for large layoffs, but now the possibility of another huge inventory write-down looms. A Bloomberg report has it that the value of the company’s in-house inventories jumped 18 percent during its first quarter, compared to the previous period, and that BlackBerries have also been accumulating in the pipeline as share losses increases. RIM took a $485 million inventory charge related to its PlayBook tablet in December, and another at $267 million related to BlackBerry inventories in March.
Shares of Cirrus Logic (NASDAQ:CRUS) spike due to chatter that Apple’s much-rumored TV set will use Cirrus’ audio codec chips. Apple already uses Cirrus’ chips in the iPhone and iPad, and that comprises the major share of the company’s revenue. Moreover, Cirrus said last month that it’s taking out a $100 million credit line to support “multiple new products this fall”, though rumors at the time revolved around an iPad Mini.
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