Three-Five Systems, Inc. has completed an acquisition of all of the intellectual property and selected assets from Zight Corp., a near-to-eye LCoS microdisplay company formerly known as Colorado Microdisplay. In conjunction with the acquisition, Three-Five Systems has also hired key technical personnel from Zight, including the company's top scientists, engineers and marketing management.
Jack Saltich, Three-Five Systems President and CEO said, "I am very pleased with this acquisition because, for a modest investment, it vaults us into a leadership position in the near-to-eye market for microdisplays. We already know about Zight's products because we had discussed possible manufacturing arrangements with them last fall. Zight is a perfect complement to Three-Five's focus on the projection market for LCoS microdisplays. In addition, the key engineers who will now join us from Zight are some of the best and brightest in this new field of microdisplays."
Three-Five Systems officials indicated that the company purchased all the intellectual property belonging to Zight, which consists of 41 patent applications, several trademarks and selected assets of the corporation, for less than $3 million in cash. Three-Five assumed no debt in the transaction.
Doug McKnight, co-founder and former Chief Technology Officer of Zight Corp., commented, "The Boulder group is very pleased that this plan to take the technology forward has come together, and that we will now become a part of Three-Five Systems. The combination of the Zight near-to-eye IP, committed customer base and team on the one hand, and the microdisplay manufacturing strength of Three-Five on the other hand, forms the ideal platform on which to bring near-to-eye products to the marketplace."
Saltich added, "Zight has been a respected leader in this emerging microdisplay industry, and the company is well known for developing an excellent microdisplay product. Zight invested nearly $63 million in its microdisplay development efforts but ran into a funding problem in this difficult economic environment. With this acquisition and Three-Five's solid cash reserve, we plan to build on Zight's accomplishments in bringing near-to- eye products to appliances for computing, communications, digital imaging and entertainment. We have already spoken with six to eight of Zight's customers, and we look forward to continuing the development of their products. Some of those products are set to be introduced in 2002. We believe that the work that has been done at Zight also sets the stage for our development of products supporting the arrival of 3G (third generation) technology in wireless telecommunication networks in 2003-2004. Therefore, we have also met with potential customers who will be key in developing products using 3G technology."
McLaughlin Consulting Group, a Menlo Park research firm that focuses on the display markets, indicates that the market for near-to-eye displays in camcorders, digital cameras, cell phones and internet appliances will reach $2 billion by the year 2005.
Three-Five Systems will maintain the office established by Zight in Boulder, Colorado, as Three-Five's near-to-eye microdisplay business unit. The newly hired Zight personnel will operate from that location.
Three-Five Systems, Inc. is a leader in the design and manufacture of liquid crystal display (LCD) modules and technology for OEM customers in wireless communications and data collection, medical electronics, and other commercial and consumer device marketplaces. In addition to traditional LCDs, the company is developing other display technologies, including its line of Brillian microdisplays. These reflective liquid crystal on silicon microdisplays are tiny, high resolution, low power displays designed for new markets such as HDTV, large format monitors, multimedia projectors and wireless Internet appliances. At its Tempe, Arizona headquarters, Three-Five operates the highest volume LCD manufacturing line in North America and houses the David R. Buchanan LCD laboratory, dedicated to the development of advanced display technologies.
The company's web site is located at www.threefive.com