Asset Purchase Further Strengthens AuthenTec's Leading Position in the Wireless Market
MELBOURNE, Fla. -- (BUSINESS WIRE) --
AuthenTec (NASDAQ:AUTH), the world's leading provider of smart fingerprint sensors and solutions, announced today that it has completed a transaction to acquire the assets of fingerprint sensor maker Atrua Technologies for approximately $4.9 million in cash. The asset purchase further extends AuthenTec's industry leading position in the wireless market and adds to its expansive intellectual property (IP) portfolio. Papers have also been filed with the Federal District Court for the Northern District of California to effect the dismissal of all claims pending in AuthenTec's patent infringement suit against Atrua as well as Atrua's counterclaims.
Through this transaction, AuthenTec acquired certain Atrua assets including its "Fingerprint Touch Control" and "Micro Pressure Control" products, as well as technologies and IP associated with the Atrua fingerprint sensor hardware and software. The acquired IP includes more than 30 issued and pending U.S. patents, focused primarily on fingerprint sensor and intelligent touch controls for mobile devices, bringing AuthenTec's total patent portfolio to more than 100 issued and pending U.S. patents.
"We believe that this asset acquisition further strengthens our position as the leading provider of touch-powered 'smart sensors' for mobile systems," said AuthenTec Chairman & CEO Scott Moody. "This transaction adds all of Atrua's patents to our own IP portfolio, giving AuthenTec the largest patent portfolio in the industry today. This asset acquisition also provides cost savings associated with the pending dismissal of our patent infringement lawsuit against Atrua. While prudently managing our cash position, we will continue to add to our broad portfolio through activities such as this and through our own smart sensor hardware, packaging and software development efforts."
AuthenTec expects to record up to half of the total purchase price as an expense in the second quarter of 2009 based upon an estimate of the savings associated with the elimination of any future litigation in this matter.
AuthenTec's newest innovations for the cell phone market include its TrueNavTM 2.0 user navigation software, TrueYouTM personalization software (associating different fingers with different phone functions), and TouchStoneTM packaging. These AuthenTec technologies are adding touch-based functionality, user features and enhanced durability to a new generation of smart phones and cell phones. More than 10 million cell phones have included an AuthenTec sensor for Power of Touch® features that include navigation, personalization, convenience and security.
Based on the Company's patented TruePrint® technology, AuthenTec products deliver extremely accurate and reliable fingerprint imaging by reading beneath the surface of the skin to the live layer, where a person's true fingerprint resides. This subsurface approach enables AuthenTec sensors to overcome common skin surface conditions to read virtually every fingerprint, every time. TruePrint allows AuthenTec to offer the smallest sensors on the market, yet provide all the security, privacy and convenience afforded in its larger form factor devices.
Forward Looking Statements:
This press release contains statements that may relate to expected future results and business trends that are based upon AuthenTec's current estimate, expectations, and projections about the industry, and upon management's beliefs, and certain assumptions it has made that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Words such as "anticipates," "guidance," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will," "prospects," "outlook," "forecast," and variations of these words or similar expressions are intended to identify "forward-looking statements." In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances, including any underlying assumptions, are "forward-looking statements." Such statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Therefore, the Company's actual results may differ materially and adversely from those expressed in any "forward-looking statement" as a result of various factors. These factors include, but are not limited to: the timing or scope of any judicial order resulting from papers filed with the United States District Court for the Northern District of California to effect a dismissal of all pending claims between the Company and Atrua Technologies, Inc., as well as other risks detailed from time to time in its SEC filings, including those described in AuthenTec's annual report on Form 10-K filed with the SEC on March 18, 2009. These "forward-looking statements" are made only as of the date hereof, and the Company undertakes no obligation to update or revise the "forward-looking statements," whether as a result of new information, future events or otherwise.
About AuthenTec
With nearly 50 million sensors sold worldwide, AuthenTec is the world leader in providing fingerprint authentication sensors and solutions to the high-volume PC, wireless device, and access control markets. AuthenTec's award-winning sensors take full advantage of The Power of Touch® by utilizing the company's patented TruePrint® technology to deliver the most convenient, reliable and cost-effective means available for enabling touch-powered features that extend beyond user authentication.
CONTACT:
AuthenTec
Media Contact:
Brent Dietz, Director of Communications, 321-308-1320
brent.dietz@authentec.com
or
Investor Contact:
Shelton Group Investor Relations
Leanne K. Sievers, Executive Vice President, 949-224-3874
lsievers@sheltongroup.com