MINNEAPOLIS, March 15, 2006 -- Saying it wants its Optronics Div. to focus solely on gallium nitride (GaN) products in ultraviolet detectors and transitors, APA Enterprises Inc. announced today that it has sold its multiwafer metal organic chemical vapor deposition (MOCVD) operations and related equipment and entered into a revenue sharing licensing agreement for $1.9 million in cash. The company did not identify the buyer.
The transaction includes the sale of the MOCVD system and technical know-how associated with the growth of state-of-the-art epilayers: two heterojunction field effect transistor patents, a pending patent application and associated intellectual property. The company said the transaction affects three employees associated with the development and growth of the epilayers. The operations were located in an off-site leased facility.
APA Enterprises consists of two divisions: Optronics and Cables & Networks. Optronics manufactures a variety of fiber optics, copper and GaN-based components and devices for industrial, commercial, consumer and scientific applications; Cables & Networks makes a variety of fiber optic and copper components for the data communication and telecommunication industries.
Terms of the transaction allow APA to market and sell products for applications greater than 1 GHz and provide revenue sharing based on future licensing agreements regarding those patents. Terms of the sale also include the provision that, over the next year, APA will act as a consultant to the buyer for an additional $100,000.
APA's Optronics Div. will now focus mainly on GaN products in both ultraviolet (UV) detector and power amplifier areas and said it is already pursuing the GaN-based UV detector market for both commercial and industrial applications. It is also developing power amplifiers that target the cellular communications market and said it will procure transistors from outside sources to support its plan.
APA began focusing its UV detector manufacturing operations in June 2004 when it discontinued its detector manufacturing consisting of detector packaging operations in Aberdeen, S.D., and growth and processing operations of its standard GaN and aluminum gallium nitride (AlGaN) detectors in Blaine, Minn.
"The recent transaction provides valuable cash and should decrease operating costs in the future," said APA Enterprises President Anil Jain. "Focusing on the transistor products based on procured transistors will have the potential of early entry into the market at lower costs."
For more information, visit: www.apaenterprises.com