DS2 emerges from difficult year

VALENCIA, SPAIN: DS2, a leading technology innovator and global supplier of high-speed powerline and coax communications silicon, has requested and obtained the protection of the Courts to declare a voluntary Concurso de Acreedores as part of its ongoing strategy to strengthen its financial position and focus its business for long-term success.

The voluntary Concurso de Acreedores is similar to a Voluntary Chapter 11 process as it permits the company to continue operations as normal while it develops a plan of reorganization to address its debt.

DS2 will continue to operate as usual and continue its long-standing commitment to its customers, suppliers, partners and employees.

“Today, we have taken an important step forward to transform our balance sheet following a particularly difficult year. In common with the broader economy, 2009 was a particularly challenging year for us, but thanks to the work and dedication of our employees we continued to support not only our existing products but invested in the development of our new products.

“Over the last six months DS2 has engaged in constructive discussions with key suppliers and creditors that will ensure continuity and uninterrupted supply during the reorganization process. Invoking the supervision of the Court's safeguards the value of our business and our assets while addressing repayment of debt and allowing us to focus on the creation of value in the short and long term,” said DS2 CEO, Jorge Blasco.

The unexpected economic and financial downturn in 2009 impacted DS2 as it has others. “Our business is returning to normal and 2010 run rates are back at 2008 levels. We expect to emerge from this process as a stronger, healthier and more competitive company and continue our legacy of delivering excellence in innovation and customer satisfaction by creating the most advanced and sustainable standards based semiconductors for high-speed communications over existing wires”, said José Angel Martín, DS2 CFO.

DS2 is in the process of finalizing development of its G.hn chipset and will have samples in Q3. DS2’s next generation G.hn silicon is also compatible with the installed base of UPA devices providing extended life cycle and investment protection for current deployments of DS2 technology.