edit: SAN JOSE (Dow Jones)--Cypress Semiconductor Corp. (CY) sold 686,849 common shares of NVE Corp. (NVEC), raising net proceeds of $23.4 million to be used for product development.
"Cypress MRAM development is taking slightly longer than expected, and the profit from the NVE investment will be used for continuing MRAM development and other research and development," said T.J. Rodgers, Cypress president
and chief executive.
In a press release Friday, integrated circuits maker Cypress said the nonvolatile magnetic random access memory program is based on NVE's spintronics technology.
Spintronics is a technique used to lock in data and memory values on integrated circuits with magnetic spin. Typically, in a dynamic random access memory, or DRAM, the circuit would lose memory when the power is turned off.
Cypress plans to keep its seat on NVE's board and will continue to honor the partnership by sharing magnetic random access memory, or MRAM, intellectual property and supplying NVE, Eden Prairie, Minn., with MRAM foundry wafers.
A Cypress spokesman was unavailable to say if it will record a gain or charge on the sale.
NVE Corp.'s shares fell after hours to $30, according to Island ECN, after closing up 4%, or $1.25, at $32.25 in regular trading on composite volume of 902,963 shares. Average daily volume is 200,501 shares.
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09-05-03 1743ET
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