In 1999, SUNNYVALE, Calif. In an effort to reduce its dependence on the erratic memory business, Cypress Semiconductor Corp. has announced its intent to buy IC Works Inc., a privately held company specializing in system timing generation ICs.

IC Works had average quarterly revenue of approximately $17.6 million and net income of approximately $2.7 million during the last three quarters of its current fiscal year.

T.J. Rodgers, president and chief executive officer of Cypress (Sunnyvale, Calif.), said that IC Works' presence in the wireless RF business will benefit Cypress, which has also begun marketing products in this area. “We believe that their RF expertise combined with our 0.25-micron BiCMOS technology will create an exciting new business for the combined companies,” Rodgers said.

Under an agreement between the companies, Cypress will issue 13.7 million shares in exchange for all outstanding stock and options of IC Works. The merger is intended to be accounted for as a pooling of interests. The closing is subject to regulatory approvals, IC Works' shareholder approval, and other customary conditions to closing.