LONDON – NXP Semiconductors NV has announced that it does not expect that the recently announced Chapter 11 filing by Trident Microsystems Inc. (Sunnyvale, Calif.) to have a material impact on its non-GAAP results for the fourth quarter of 2011.
However, NXP (Eindhoven, The Netherlands) has written down the value its holding from a book value of $18 million at the end of the third quarter of 2011 to zero at the end of the fourth quarter of 2011.
In October 2009 NXP announced it would exchange its television and set-top-box IC businesses for a 60 percent stake in Trident. The expectation at the time of the deal was that Trident would be able to achieve economies of scale and NXP could realize a profit on its holding at some point after the expiry of a two-year lock in period.
NXP is due to announce its financial results for the fourth quarter of 2011 on Feb. 9, 2012.
Related links and articles:
Entropic bids $55M for Trident set-top SoCs
NXP shoots for hefty pay-day with Trident deal
Update: Asset swap gives NXP 60 percent stake in Trident