Tuesday, September 29, 2009

Micron Loss on Aptina Spin-Off Corrected to $41M

Micron has just announced its quarterly report with Aptina deal details. It appears that Micron's previously recorded $53M loss on Aptina sale is corrected to $41M now:

"On July 10, 2009, the company sold a 65% interest in Aptina Imaging Corporation (“Aptina”), a wholly-owned subsidiary of the company and a significant component of its Imaging segment, to Riverwood Capital (“Riverwood”) and TPG Capital (“TPG”). Under the agreement, the company received approximately $35 million in cash and retained a 35% minority stake in Aptina and Riverwood and TPG contributed significant debt-free capital to the independent, privately-held, company. In connection therewith, in the third quarter of fiscal 2009, the company recorded a charge of $53 million, the estimated loss on the transaction, to write down certain Aptina intangible assets and property, plant and equipment to their estimated fair values. The company’s results of operations for the fourth quarter of fiscal 2009 include a credit of $12 million to adjust the estimated loss to the final loss of $41 million. The company will account for its interest in Aptina under the equity method and will continue to manufacture products for Aptina under a wafer supply agreement."

5 comments:

  1. OV paid $30M for CDM 4 years ago, If they put this money in a CD account with 5% yield, they can buy the 65% of Aptina now.

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  2. OV has had the balance sheet to buy Aptina for a long time. OV management chose not to and probably for good reason. Whatever R&D and SG&A synergies there were would be more than offset by having to deal with two entirely different fab processes and pixel design approaches. Besides, why buy the company when you can get the people and customers far cheaper. Just look at the resumes from Aptina employees and RFPs from Aptina customers that have been circulating.

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  3. That is why OV is so well regarded in technical community. They only get best employees kicked out of Aptina. OV learns all kinds of good discredit techniques from their management and customers. Like old Soviet style disinformation techniques.

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  4. It's not clear if Omnivision could buy 65% of Aptina for $35M. The real math is more complex:

    First, Micron used to own 85% of Aptina or so, with 15% or so being employee stock options.
    Then Micron sold 50% of Aptina and got $35M in exchange.
    Then Micron took out all cash from Aptina. It's not clear if this cash is a part of $35M or not.
    Then Aptina got some undisclosed amount of cash from the new investors. Since Micron holds 35% of Aptina, a part of this new money belongs to Micron. In fact, the other 65% of the cash is part of the deal as well, so Omnivision would need to invest this too.

    All in all, the real value of the deal is hidden from us until more details would be released.

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  5. Old Soviet style? disinfomation tech ? Don't understand.

    Can you fresh it with more color ?

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