Cirrus Logic and Nvidia settle litigation

In May 2003, Cirrus Logic brought suit against NVIDIA and ATI Technologies Inc. in the United States District Court for the Western District of Texas, Austin Division, for infringement of a Cirrus patent relating to graphics processor technology. In July 2003, NVIDIA counterclaimed against Cirrus, alleging infringement of patents owned by NVIDIA relating to audio-controller technology.

Under the settlement agreement, all outstanding claims and counterclaims in the lawsuit between Cirrus and NVIDIA will be dismissed. In connection with the settlement, Cirrus Logic will transfer to NVIDIA a portion of its patent portfolio relating to the former graphics products group of its PC products division, a business that Cirrus exited several years ago. Financial terms of the arrangement were not disclosed.

As a result of the settlement, Cirrus said that its total cash at the end of the second quarter of fiscal year 2004 is expected to be approximately $113 million to $118 million, compared to $115.5 million at the end of the company’s first quarter.

Cirrus’ patent infringement claims against ATI remain pending.

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