Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced it has signed a definitive agreement to acquire Iridigm Display Corporation, a privately held display technology company, which will become a wholly owned subsidiary of Qualcomm upon completion of the transaction. Qualcomm will pay approximately $170 million in cash for the approximate 86 percent of Iridigm that it does not already own. Completion of the transaction is subject to regulatory approval and certain other closing conditions.
Iridigm’s patented iMoD™ technology, based on a Micro-Electro-Mechanical-Systems (MEMS) structure combined with thin film optics, is a breakthrough in display technology that promises substantial performance, power consumption and cost benefits as compared to alternative display technologies. It delivers vivid and realistic display image quality that can withstand extreme temperatures and be viewed in any environment, including bright sunlight. Displays have become a key driver of the overall power consumption of wireless devices, with the increasing use of vibrant color screens and multimedia applications that generate rapidly changing images. The iMoD solution offers significantly lower power consumption than existing display solutions, thereby extending battery life of wireless devices.
With the inclusion of color displays in all types of phones, including models at the low end of the market, the cost of the display has become an even more significant driver in the overall cost of the handset. An iMoD display should cost significantly less to manufacture than a comparable liquid crystal display (LCD) because it requires fewer processing steps to produce, thus enabling advanced multimedia capabilities on all tiers of mobile devices.
“The convergence of consumer electronics products, including cameras, MP3 players, camcorders, GPS receivers and game consoles, into wireless devices is driving the increased adoption of 3G CDMA,” said Dr. Paul E. Jacobs, executive vice president and president of Qualcomm Wireless & Internet Group. “Our acquisition of Iridigm will accelerate the time to market for the iMoD technology, which fits Qualcomm’s overall strategy of rapidly increasing the capability of wireless devices while driving down cost, size and power consumption.”
“Joining a wireless leader such as Qualcomm provides a superb opportunity to advance our technology and extend its global reach,” said Mark Miles, co-founder of Iridigm. “The synergies between Iridigm and Qualcomm make this acquisition a logical fit for both companies, and we’re excited to join Qualcomm in advancing display capabilities for the wireless industry.”
Iridigm Display Corporation produces revolutionary reflective displays for a variety of mobile device applications. Iridigm has created the iMoD Matrix™ component, a reflective flat panel color display technology based on MEMS and thin film optics. The bright, reflective nature of the iMoD Matrix makes a display as easy to read as a glossy magazine. High image quality combined with inherent high resolution and ultra low power consumption makes it ideal for mobile applications of all types. Iridigm is a privately held company headquartered in San Francisco, Calif. Additional information on Iridigm can be found at www.iridigm.com
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company’s CDMA digital technology. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 500 Index and is a 2003 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Company’s ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company’s SEC reports, including the report on Form 10-K for the year ended September 28, 2003, and most recent Form 10-Q. In addition, the closing of the transaction described herein is subject to the receipt of regulatory approval and the fulfillment of other closing conditions. The success of the iMoD technology is also subject to certain risks related to the development of the technology and the products that incorporate it.