Leadis Technology Sells Its Display Driver Business

SUNNYVALE, CA, Jan 26, 2009 (MARKET WIRE via COMTEX News Network) -- Leadis Technology, Inc. (NASDAQ: LDIS), an analog and mixed-signal semiconductor developer of color display drivers, power management and touch ICs for mobile consumer electronics devices, today announced the sale of its display driver business to AsTEK, Inc., a privately-held company located in Korea. The consideration paid was $3.5 million of cash plus $0.5 million of assumed liabilities. Leadis retains rights to most of the current display driver products in production, as well as ownership of its proprietary EpiC(TM) technology for AM-OLED displays.

"As we stated in our last earnings release, we must significantly reduce expenses to preserve cash and further focus the company," said Mr. Tony Alvarez, President and CEO of Leadis. "While we remain optimistic about the prospects of EpiC(TM) technology based on results to date, because of technical and market issues bringing this innovative technology to market will take longer than we originally anticipated. This transaction allows AsTEK to focus its resources on development of new display driver products, and it enables Leadis to focus on its Touch and Power Management products while retaining revenue from legacy display driver products. Combined with other cost cutting measures, we have now dramatically reduced our operating expenses."

Key terms of the sale are as follows:

--  AsTEK purchased all of the outstanding stock of Leadis Technology
    Korea, Inc., which contains the display driver development group, for $3.5
    million of cash and $0.5 million of assumed liabilities, with half of the
    purchase price paid at closing and half due one year from the date of sale.
--  Leadis Technology, Inc. retains ownership of EpiC(TM) technology
    developed to date, and grants AsTEK a conditional exclusive license to this
    technology.
--  Leadis Technology, Inc. will receive royalty payments on future sales
    of products containing EpiC(TM) technology.
--  Leadis Technology, Inc. continues to hold the rights to most legacy
    display driver products already in production and will continue to sell
    these products to existing customers.

AsTEK will be managed by Dr. Keeho Kim, formerly General Manager of Leadis' display driver group. "Dr. Kim's ongoing leadership of this display driver group enables a smooth transition as they continue current development activities," said Mr. Alvarez. "This will benefit not only AsTEK's customers but also Leadis, as we will profit financially from the future success of EpiC technology."

"I look forward to leading AsTEK in our innovative design activities and development of advanced technology display drivers," said Dr. Kim, CEO of AsTEK. "We are pleased to have acquired a streamlined business with an excellent opportunity to bring EpiC(TM), RGBW and other advanced amorphous TFT display drivers to market this year."

Leadis' fourth quarter earnings call is scheduled for Wednesday, January 28, 2009. The company will provide further details on the transaction and answer questions from interested parties at that time.

---------

I'm still in Leadis Technology after spin-off the company, which means that I have changed my role and division.
아쉬움25%,걱정25%,설레임50%. Good decision. :-)