MOUNTAIN VIEW, Calif.--Still reconsidering a plan to liquidate itself, Opti Inc. here posted a net income of $381,000 on revenues of $2.5 million in the fourth quarter of 2001. The company's sales surged 98% on a sequential basis from the third quarter of 2001 because of an increase in last-time buys of PC chip sets, said Opti's chief executive officer.
Opti--once a leading chip-set supplier--announced postponement of its voluntary liquidation plan at the start of this year to give the company more time to evaluate its intellectual property (IP) and the potential for filing patent infringement suits against other IC suppliers (see Jan. 4 story). A decision on the next step has not yet been made by Opti's management, and if the company decides to proceed with the liquidation plan it will hold a special shareholders meeting later in 2002.
Opti said its net sales for 2001 were $7.6 million, a 67% drop from $23.2 million in 2000. Opti's net income in 2001 was $878,000 vs. a net income of $11.0 million in 2000.
"Our plan of voluntary liquidation and dissolution remains on hold while we continue to evaluate our intellectual property position, including the means by which we will pursue claims for the potential infringement of certain of our patents," said Bernard Marren, CEO and president of Opti.
Marren said the company's sales and gross margins increase significantly due to the sale of older core logic products, which had been previously written off. Last-time buys of embedded core logic products and higher volumes of USB host controllers drove up sales in the fourth quarter, he said.
But the surge appears to be over for Opti. "We anticipate that revenue and gross margin as a percentage of sales during the first three months of 2002 will be significantly lower than the fourth quarter of 2001," Marren said. "During the year the company continued to downsize its operation in an attempt to minimize the effect of the reduced revenues that the company has been generating."