DALLAS, TX, -- RF Monolithics, Inc. (NASDAQ: [RFMI], "RFM" or the "Company") announced that Murata Electronics North America, Inc., has purchased 533,000 shares of RFM Common Stock at $1.31/share, representing a small premium over RFM's recent 30 day volume weighted average price, in a private transaction. The purchase represents less than five percent of RFM's outstanding stock.
Additionally, RFM and Murata Manufacturing Co., Ltd. ("Murata"), (6981.OSE/TSE), Murata Electronics North America's parent, have entered into a collaboration agreement.
David Kirk, President and CEO of RFM commented, "The collaboration agreement will facilitate our companies' exploring how we can cooperate to provide additional products and services to our customers and how each other's resources can be deployed to assist this effort. We initially will put an emphasis on the wireless solutions portion of both company's product portfolios, but we will not be limited to just that area. We are excited about collaborating with such a fine company as Murata and feel both companies will benefit."
John Denslinger, Senior Vice President of Murata Wireless Solutions commented, "The collaboration agreement opens up such a wide variety of opportunities for both companies in the M2M marketplace. Combined, we have the broadest range of wireless solutions offerings, covering all market segments from the communications market to the industrial and medical markets. We even see opportunities in our fundamental component business that could benefit us both over the next several years."
Buddy Barnes, CFO of RFM commented, "The investment by Murata Electronics North America, Inc., basically at market price, shows the value of the improved performance of RFM over the last 12–15 months and meets our bank requirement for new equity. According to the terms of our bank agreement, this will also increase our availability under this collateralized facility by up to $750,000."
"In the short term, we will use the proceeds of this equity investment to pay down our bank line. Over the long term, we will use this new investment and the funds that we have available under our bank line to fund our program for growth. We intend to continue to develop new products and support an aggressive sales and marketing effort to promote them. We believe the M2M marketplace offers us a very large and attractive opportunity to grow our business and we are determined to do that," further stated Mr. Barnes.
RF Monolithics, Inc., headquartered in Dallas, TX, is a provider of solutions-driven, technology-enabled wireless connectivity for a broad range of wireless applications—from individual standardized and custom components to modules for comprehensive industrial wireless sensor networks and machine-to-machine (M2M) technology.
About Murata Electronics North America, Inc.
Murata Electronics North America, Inc. is a wholly owned subsidiary of Murata Manufacturing Co., Ltd., (6981.OSE/TSE) whose global headquarters are in Kyoto, Japan. Murata Manufacturing Co., Ltd. is a worldwide leader in the design, manufacture and sale of ceramic-based passive electronic components and power supply modules. With annual revenues in excess of ¥530 billion, Murata Manufacturing Co., Ltd. is committed to the development of advanced electronic materials and leading edge, multi-functional, high-density modules. Products include: RF & microwave front end filters, connectivity modules, sensors, ceramic chip antennas, GaAs switches and Switchplexers, baluns, couplers, isolators, coaxial connectors, RF test points, DC-DC converters, traps, discriminators, ceramic capacitors, EMI filters, inductors, piezoelectric alarms, ceramic resonators, trimming potentiometers, trimming capacitors and thermistors.