Opticom and TFE have been working on a polymeric three-dimensional memory technology for Intel for several years but in 2003, without going in to details, the company said there had been persistent problems perfecting the technology.

As a result Opticom made a net loss of NOK 41.2 million (about US$6.0 million) on zero sales in the fourth quarter. For the 2003 year the company made a net profit of NOK 12.3 million (about US1.8 million) on sales of NOK 4.4 million (about $640,000).

Meanwhile, at the end of the fourth quarter, Intel paid $2 million to TFE in relation to an expanded field of use for its technology, Opticom said. But Opticom also said that it has called in loans extended to TFE and that TFE was considering making an offer of additional shares to its parents, Opticom and Intel, to fund the debt repayment.

In the most recent results statement Opticom said no deliveries were made to Intel in the fourth quarter and no payments were received from Intel in connection with this work.

"The company does not now believe that it will be able to make the deliveries as envisaged under its contract with Intel without changes in the specifications," Thomas Fussell, chairman of Opticom, said in a statement.

Opticom may be having problems getting the technology to reach target endurance and fatigue parameters over the normal commercial temperature range of 0 to 70 degrees centigrade, a source said. Reaching the commercial temperature range is something that Intel would be likely to consider mandatory in any new electronic memory technology.

In his statement Fussell added that Opticom, TFE and Intel are in contact about the challenges and probable solutions for the joint process and product development. TFE is in discussions with Intel regarding possible amendments to the productization and licensing Agreement.

"The discussions are ongoing, and the board cannot now predict the likely outcome or its timing. Further announcements will be made in due course," said Fussell in the statement.

At the end of the fourth quarter, Intel paid US$2.0 million to TFE. The payment was the first of four installments of the license fee for an expanded field of use for TFE's technology.

Intel has expressed its current intention to proceed to pay the remaining installments, however, this is not a contractual obligation and Intel may choose to abandon the 'expanded' license before all four payments are made and in that case, the payments already made will be applied to any future royalties due related to the original field of use, the company said.

Opticom said that NOK 7.7 million (about US$1.1 million) was lent to two "primary insiders" who provided Opticom shares as collateral. The loans, on which interest is being charged, are due to be repaid as and when the shares issued are free to be sold.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved