Korea based AsTEK acquires display driver business of Leadis Technology

Analog and mixed-signal semiconductor developer, Leadis Technology has sold 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 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 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."

"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."