Tyco Electronics Ltd. announced that its Board of Directors has authorized the company to pursue the divestiture of its Radio Frequency Components and Subsystem business. This business represented approximately $500 M of the Wireless Systems segment's total sales of $887 M in fiscal 2007. The remaining portion of the Wireless Systems segment — Public Safety/Land Mobile Radio Systems and Products — is not included in the planned divestiture.
The divestiture is part of Tyco Electronics' previously-announced plan to divest or exit non-strategic businesses. Headquartered in Lowell, MA, the Radio Frequency Components and Subsystem business employs approximately 2,000 people primarily located at 11 locations throughout the US and Europe. This unit designs, manufactures and markets amplifiers, antennas, attenuators, diodes, signal generators, limiters, transistors, modulators and mixers; and microwave and millimeter-wave integrated circuits for the aerospace, defense and commercial markets.
Tyco Electronics has no current plans to exit or divest its Public Safety/Land Mobile Radio Systems and Products business.
Beginning with the second fiscal quarter, the company will account for the businesses identified for planned divestiture as discontinued operations. Tyco Electronics continues to expect adjusted earnings per share (EPS) from continuing operations of $0.60 to $0.62 per share for its second fiscal quarter.