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Sat, Apr 14, 2007 - Page 10 News List

Philips Electronics to buy US' Digital Lifestyle Outfitters

BRANCHING OUT The company expects the acquisition to strengthen its position in products that accompany mobile electronics equipment


Royal Philips Electronics NV said yesterday it would buy Digital Lifestyle Outfitters, a US maker of cases and cables for electronics equipment, for an undisclosed sum.

Philips said in a statement the Charleston, South Carolina-based company had sales of around US$100 million last year.

Philips expects the acquisition to strengthen its position in "peripheral" products that accompany mobile or portable electronics equipment.

"DLO designs, markets and distributes accessories, including docking stations, FM transmitters, cables and cases for mobile audiovisual devices such as MP3 and video players," Philips said in the statement.

Amsterdam-based Philips expects to complete the deal in the second quarter, pending regulatory approval.

Philips may say first-quarter profit jumped more than fivefold on the sale of part of its stake in Taiwan Semiconductor Manufacturing Co (TSMC, 台積電).

Net income probably increased to 832.3 million euros (US$1.12 billion) from 160 million euros a year earlier, the median estimate of 10 analysts Bloomberg News surveyed by telephone and e-mail.

Sales may have fallen 0.2 percent to 6.15 billion euros.

Philips chief executive officer Gerard Kleisterlee last year sold off most of the company's chip unit and part of its stake in TSMC as part of a strategy to focus on appliances, medical scanners and lamps.

Philips forecast a "challenging" first quarter for its consumer electronics unit, the company's largest division by revenue, as prices of flat-panel televisions decline.

Philips is scheduled to report first-quarter earnings on April 16, followed by a conference call hosted by chief financial officer Pierre-Jean Sivignon the same day.

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