MOUNTAIN VIEW, Calif. -- Consumer-chip maker Opti Inc. today sold its semiconductor business to Opti Technologies Inc., an unaffiliated company formed to acquire the semiconductor business, for approximately $700,000 in cash plus future royalties.
The maximum amount of the deal if the acquirer were to remit the full amount of royalties would be approximately $1.9 million in cash. No details were provided about the new Opti entity, however.
Opti, which has fallen on hard time, recently announced plans to liquidate the company. But instead, the Mountain View-based company delayed a previously announced liquidation plan in order to pursue legal cases against other chip makers, which might be violating its patents.
In May, Opti announced it had filed suit against National Semiconductor Corp. for alleged infringement of its bus-interface patents (see May 9 story ).
"The company had explored several options in regards to the sale of the business and determined that this was the best deal for the company and our shareholders," said Bernard Marren, CEO and president of OPTi, in a statement. "This deal eliminates our risk in inventory and accounts receivable if the semiconductor market continues to have weakness and provides the company with a revenue stream in the future," he added.