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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
JULY 27, 1999
Date of Report (Date of earliest event reported)
FAROUDJA, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-23107 77-0444978
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
750 PALOMAR AVENUE, SUNNYVALE, CA 94086
(Address of principal executive offices and Zip Code)
408.735.1492
Registrant's telephone number, including area code
NOT APPLICABLE
Former name or former address, if changed since last report.)
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ITEM 5. OTHER EVENTS.
The press release issued by the Registrant on August 2, 1999, describing
the Registrant's entry entered into license, joint development and equity
purchase agreements with Sage, Inc. on July 27, 1999, is attached hereto and
incorporated by reference herein.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FAROUDJA, INC.
(Registrant)
By: /s/ R.A.Sheffield
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R.A. Sheffield, Vice President of Finance and Principal
Financial Officer
Date AUGUST 6, 1999
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FAROUDJA, INC.
750 Palomar Avenue
Sunnyvale, California 94086 tel: 408-735-1492 fax: 408-735-8571
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FOR IMMEDIATE RELEASE
FAROUDJA AND SAGE ANNOUNCE LICENSE,
JOINT DEVELOPMENT, AND EQUITY TRANSACTIONS
SUNNYVALE, CA, AUGUST 2, 1999 -- Faroudja, Inc., a world leader in high
performance video processing technologies (Nasdaq: FDJA) and Sage, Inc., a
leading supplier of controller chips to the flat panel display industry, today
announced their signing of license, joint development and equity purchase
agreements.
The agreements involve:
- - Faroudja's grant of a royalty-bearing license to Sage of certain video
processing technologies;
- - Joint development for potential use in a wide variety of digital display
controller chips for video applications; and
- - Faroudja taking an equity position in Sage of just under 5%.
Financial terms of the transactions were not disclosed.
Faroudja and Sage will work together to incorporate Faroudja's world-renowned
adaptive nonlinear video processing technologies - decoding, deinterlacing and
enhancement - with Sage's technologies for developing application specific
integrated circuits ("ASICs") for flat panel displays. Faroudja technologies
transform conventional video signals into film-like images. Color and detail are
improved dramatically without introducing annoying artifacts. Sage technologies
simplify the operation of flat panel displays and provide its OEM partners with
integrated and cost-competitive solutions. The combination of Faroudja and Sage
technologies will enable the development of a complete chip solution that is
cost-effective and significantly improves the quality of motion video displayed
on flat panel devices.
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"When Sage recognized the increasing importance of high-quality video for its
flat panel markets, Faroudja's unparalleled video quality and strong
intellectual property position made Faroudja the ideal partner," said Chandra
Reddy, Sage president and CEO.
"We are very excited about working with Sage's talented and focused team. Sage
is off to a fast start providing ASICs and system solutions for the flourishing
digital display market," said Glenn W. Marschel, Jr., Faroudja's president and
CEO. "This transaction and relationship are an important step in executing
Faroudja's strategy of supplying premium video processing technology for a wide
variety of video display applications. Sage serves markets complementary to
those traditionally served by Faroudja," Mr. Marschel concluded.
Faroudja, Inc. (Nasdaq: FDJA) is a world leader in high-performance video
processing technologies for markets requiring superior image quality solutions.
The Company provides innovative products for the HDTV broadcast, home theater,
digital television and PC/TV convergence markets. Faroudja's technologies are
protected by more than 60 patents. Faroudja has received numerous awards,
including an Emmy award for Engineering Development and a Lifetime Achievement
Emmy presented in June 1998 to its founder, Yves Faroudja.
Sage, Inc., a privately held fabless semiconductor company, is a leading global
provider of mixed signal display image processors. The Company was established
in 1994 to develop and market a range of electronics to support the flat panel
display industry. Sage offers a range of high speed, high-performance, mixed
signal chips and accompanying software that enable the manufacturers of flat
panel monitors, TVs and portable display devices to create products which
process images and video with optimal display quality and ease of use. Sage chip
solutions address analog, digital and dual input markets offering a high degree
of flexibility and integration resulting in low cost and high performance. Sage
currently supplies the world's leading TV and monitor producers and works
closely with its customers in its new product development projects to provide an
ever-growing range of high-end video and monitor interfaces.
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Except for historical information contained herein, this press release contains
forward-looking statements that are subject to risks and uncertainties,
including the timely development and acceptance of new products, product
availability from suppliers, the impact of competitive products and pricing,
changing TV standards and other risks set forth under the caption "Factors
Affecting Future Operating Results" in Faroudja's Annual Report on Form 10-K for
the year ended December 31, 1998, its quarterly report on Form 10-Q for the
quarter ended March 31, 1999 and other filings with the SEC.
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CONTACTS:
COMPANY FINANCIAL/GENERAL INTEREST MEDIA
Robert Sheffield Michael Bulger
VP Finance, CFO Robinson Lerer & Montgomery
Faroudja, Inc. (212) 484-7413
(408) 735-1492
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