Sunplus to sell set-top box chip business to AvailinkTuesday, January 20th, 2015
Sunplus to Dispose STB Chip Business
HSINCHU SCIENCE PARK, Taiwan — Sunplus Technology Co., Ltd. (“Sunplus” or “the Company”) (TAIEX: 2401, LSE: SUPD) today announced it will dispose its assets of STB(set-top-box) product center to Availink Inc. for NT$330 million. Afterwards, Sunplus will invest Availink about NT$295million to acquire 16.67% shareholding of Availink, meanwhile, Sunplus will close its STB product center and cut about 90 jobs.
Mr. Chou-Chye Huang, Sunplus’ Chairman and CEO said, “The competition in STB IC design has become much tougher. We have tried hard to make profits but failed for the products’ averaged selling price and margin are dropping fast. We have made decision to quit the STB IC business, which will reduce our losses and make us be more focused on automotive IC business to improve our profitability.”
The Sunplus’ consolidated net sales in 2014 totaled NT$8,713 million. The consolidated net income of Sunplus from January to September in 2014 totaled NT$460 million, and the consolidated earnings per share of first three quarters in 2014 were NT$0.63, which increased 343% compared to the same period in 2013.
The transaction is expected to close in the first quarter of 2015.