SUNNYVALE, Calif., March 1 -- Leadis Technology, Inc. (NASDAQ:LDIS), a leading mixed-signal semiconductor developer of display driver ICs for small panel color displays, today announced the acquisition of Mondowave Inc., a privately held analog semiconductor company specializing in low-power consumer audio applications. Mondowave, headquartered in Mountain View, California, has announced sampling of an industry leading low-power CODEC and an FM transmitter, targeting portable music players, and expects to start mass production in the second half of 2007. Mondowave has approximately ten patents in progress pertaining to their technology, including what they believe is a revolutionary amplifier technology that facilitates very low power dissipation.
The Mondowave acquisition represents Leadis' continued aggressive diversification strategy. In January, Leadis announced its plan to expand its business beyond display driver ICs. The company has launched internal efforts in LED drivers and Touch Sensor Technology products, to capitalize on synergies with its display driver business as well as its existing engineering talent in analog and mixed-signal applications.
"The addition of Mondowave is a key growth component to supplement our internal expansion efforts beyond display driver ICs," said Mr. Tony Alvarez, President and CEO of Leadis Technology. "With the convergence of mobile devices using video and audio components, this combination will allow Leadis to provide higher silicon content into consumer mobile devices. Mobile devices increasingly demand both high fidelity and low power consumption. We believe Mondowave's products for portable audio devices can deliver very high fidelity while dissipating less than half the power of competing products. Additionally, this acquisition will allow Leadis to expand to future markets, such as home entertainment and automobile sectors."
The Mondowave team will join Leadis immediately. Tim Massey, CEO of Mondowave, will serve as Leadis' Vice President and General Manager of Audio Products, and Cary Delano, Mondowave's COO and CTO, will serve as Leadis' Vice President and COO of Audio Products.
"We are very excited about the intrinsic value this acquisition creates for our customers," said Mr. Massey. "Joining forces with Leadis will give our customers access to both innovative audio products and a proven semiconductor supplier. We look forward to launching a line of power-efficient audio products that enable longer listening times and smaller batteries without sacrificing music quality or cost."
Under terms of the agreement, Leadis will acquire all of Mondowave's outstanding common stock for $8 million in cash. Additionally, Leadis will pay Mondowave employees joining Leadis bonuses in future periods for retention and earn out performance goals. Leadis expects much of the purchase price will be recorded as an in-process research and development charge in the current quarter results. The amount of that charge has not yet been determined. Leadis is expected to report its first quarter 2007 results in late April.
About Leadis Technology, Inc.
Leadis Technology, Inc., headquartered in Sunnyvale, California, designs, develops and markets analog and mixed-signal semiconductors that enable and enhance the features and capabilities of small panel displays, focusing on the mobile handset market. Leadis' core products are color display drivers, which are critical components of displays used in mobile consumer electronic devices, and LED drivers, which provide controlled levels of current required to drive light emitting diodes in diverse applications including mobile backlight units, camera flash, and general illumination. Leadis supplies display drivers supporting the major small panel display technologies, including a-Si and LTPS TFT LCD's, color STN LCD's, and color OLED displays, and LED drivers supporting mobile backlighting applications.
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