Arri Looks to Acquire Some Dalsa Digital Cinema Assets

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Fri, 11/07/2008 - 19:00 -- Nick Dager

Semiconductor and electronics company Dalsa is committed to eliminating the ongoing losses in the digital cinema division by the end of the year. The Waterloo Ontario Canada-based company has recently entered into a non-binding letter of intent which includes a 30-day period of exclusive negotiations with Arri. Under the terms of the letter of intent Arri would acquire certain existing assets of the Dalsa digital cinema division. In any event Dalsa Digital Cinema and its Origin camera will almost certainly be history by the end of this year. Concurrently Dalsa and Arri would enter into a technology partnership agreement whereby Dalsa will develop for Arri custom high performance CCD image sensors and related products. Furthermore Dalsa would supply the developed products to Arri for digital cinematography applications through Dalsa’s core businesses. Related to the transaction contemplated by the letter of intent Dalsa will endeavor to find a buyer for its Los Angeles-based camera rental operations. Dalsa will eliminate the ongoing losses from the digital cinema business prior to year-end however there is no assurance that any transactions will be completed. The results of operations and financial position of Dalsa’s digital cinema business unit have been segregated and presented separately as discontinued operations in the company's unaudited consolidated interim financial statements for the third quarter. The company has taken a $24.9 million after tax charge comprised of a non-cash charge of $21.7 million and a cash charge of $3.2 million. The actions we undertook in the third quarter to stem further losses in our digital cinema initiative will now allow us to focus our attention more fully on our core digital imaging and semiconductor businesses and to further build on their success moving forward says Brian Doody chief executive officer of Dalsa. The financial results in our core businesses this quarter and this year underscore Dalsa’s strong international technology and product leadership position as well as the strong fundamentals of our business. We look forward to meeting with investors and analysts to share more about our digital imaging and semiconductor businesses at our upcoming Analyst Day taking place in Toronto on November 18. Dalsa