A consortium of customers is haggling with Xerox Corp on terms to buy an interest in struggling DpiX Inc, the developer of high-resolution flat panel displays. Beaverton, Oregon monitor manufacturer Planar Systems Inc has already expressed an interest and the European Trixell consortium, which includes Philips Electronics NV, Siemens AG and Thomson Group, have been engaged in talks with the company for some time.
None of the potential investors is enthusiastic about pouring money into what is effectively a start-up and for whom profitability is some years away. But they are driven by the fact that DpiX is the last supplier of active-matrix (AM) liquid crystal displays (LCD) technology left in the US.
DpiX, a spin-off from Xerox’s Palo Alto Research Center (PARC), has finally exhausted its parent’s patience after absorbing around $100m in funds together with grants of up to $70m from the Department of Defense. The cash has produced some fine technology, though, with 7 million-pixel displays that emulate the quality of laser-printed displays.
While their products find an eager market in medical and defense applications, they are a long way from being commercially viable. Reports from those who have worked at the company suggest DpiX lost $15m on revenues of $10m last year. In the circumstances, it is inevitable that Xerox would seek others to bear the burden of DpiX and plans a gradual shut-down of the operation by the end of the year so that it can complete its contracts.
In Europe, the Trixell consortium, who use DpiX displays in medical applications, are tight-lipped about the extent of their interests. Jack Raiton, CFO of Planar is hopeful a consortium will succeed in rescuing DpiX and Xerox says it will consider any kind of proposal. The company’s problems come at a time of consolidation in the US flat panel display market. Last week Micron Technology Inc sold its Boise, Idaho display division to Pixtech Inc, for around $11m (CI No 3624).
