NeoMagic Corporation (Nasdaq: NMGC), a leader and pioneer in developing and delivering low-power solutions for multimedia-rich mobile phones and handheld devices, announced that it has signed an agreement to sell selected patents and patent applications to Faust Communications Holdings, LLC for $12.5 million, providing net proceeds of $9.5 million after agency commissions. The patents and patent applications sold relate to certain of NeoMagic’s non-essential patents. NeoMagic will retain a worldwide, non-exclusive, royalty-free license to use the technology covered by these patents and patent applications for all of its current and future products. The transaction is anticipated to close and fund within approximately 35 days, subject to customary closing conditions.
“We are particularly pleased with this patent sale transaction, as it reflects a true acknowledgement of the value of this technology,” stated Douglas Young, President and CEO of NeoMagic Corporation. “We also want to recognize the innovative contributions of Deepraj Puar, our Vice President of Operations, and inventor of the embedded DRAM patents sold in this transaction. We wish to acknowledge and thank Deep for his technology developments along with his contributions to the monetization of these patents,” concluded Young.
NeoMagic Corporation delivers semiconductor chips and software that provide mobile solutions that enable new multimedia features for handheld devices. These solutions offer low power consumption, small form-factor and high performance processing. The Company demonstrated one of the first solutions used for H.264 video decoding in a mobile digital TV phone, and is developing and delivering solutions for audio/video processing of the dominant mobile digital TV standards, including ISDB-T, T-DMB, E-DMB and DVB-H. For its complete system solution, NeoMagic delivers a suite of middleware and sample applications for imaging, video and audio functionality, and provides multiple operating system ports with customized drivers for the MiMagic product family. NeoMagic has a broad patent portfolio that covers NeoMagic’s proprietary array processing and other technology.
NeoMagic and the NeoMagic circle logo are registered trademarks, and MiMagic and NeoMobileTV are trademarks, of NeoMagic Corporation.