Item 7.01. Regulation FD Disclosure.
On November 27, 2007, OPTi Inc. (the “Company”) held its 2007 Annual Meeting of Shareholders (“Annual Meeting”). All proposals submitted to the Company’s shareholders were approved, including the reelection of the Company’s four directors for a one year term.
In the informal portion of the Annual Meeting, representatives of the Company discussed, among other things, the status of various legal proceedings of the Company, including the following:
• The Company provided an update on the status of the Company’s arbitration proceeding against NVIDIA Corporation, which the Company previously initiated in the belief that NVIDIA has breached the terms of the license agreement between NVIDIA and OPTi, dated August 3, 2006. The Company disclosed that the arbitrator had been selected and that the Company was seeking damages through the arbitration in the range of $7 million to $9 million. The Company also disclosed that it currently expects to learn the outcome of the arbitration in the next six months, and that it estimates there is an 80% chance of the Company receiving a favorable outcome in the arbitration. The Company also explained that it expects the resolution of this arbitration proceeding is the only definitive outcome for any of its legal proceedings that it currently anticipates receiving through the period ending on June 30, 2008.
• The Company provided an update on the status of the Company’s patent infringement lawsuit in the United States District Court for the Eastern District of Texas against Apple Inc. (“Apple”) for infringement of three U.S. patents. The three patents at issue in the lawsuit are U.S. Patent No. 5,710,906, U.S. Patent No. 5,813,036 and U.S. Patent No. 6,405,291; all entitled “Predictive Snooping of Cache Memory for Master-Initiated Accesses” (the “Predictive Snooping Patents”). The Company disclosed that it expected to have a Markman hearing in the case in the fall of 2008.
• The Company provided an update on the status of the Company’s patent infringement lawsuit in the United States District Court for the Eastern District of Texas against Advanced Micro Devices for infringement of the Predictive Snooping Patents. The Company disclosed that it expected to have a Markman hearing in the case in July, 2008.
• The Company provided an update on the status of the Company’s patent infringement lawsuit in the United States District Court for the Eastern District of Texas against eight companies for infringement of two U.S. patents. The two patents at issue in the lawsuit are U.S. Patent No. 5,944,807 and U.S. Patent No. 6,098,141, both entitled “Compact ISA-Bus Interface” (the “LPC Patents”). The complaint alleges that Advanced Micro Devices, Atmel Corporation, Broadcom Corporation, Renesas Technology America, Inc., Silicon Storage Technology, Inc., SMSC, STMicroelectronics and VIA Technologies, Inc. have infringed the LPC Patents by making, selling, and offering one or more of the following products: core logic chipsets, Super I/O devices, Trusted Platform Modules, certain flash memory devices, certain I/O controllers and other semiconductor products incorporating Compact ISA-Bus Interface technology. The Company also disclosed that the Company was in discussion with one of the litigants regarding a possible settlement.
• The Company explained that it believes that multiple companies are possible targets for future lawsuits for infringement of the LPC Patents. The Company expects to file new cases during the first half of 2008.
The Company also provided an update on its plans for the use of cash provided by future revenues. The Company indicated that it preferred to retain a cushion of $9 million to $10 million in cash. The Company also indicated that it would consider returning monies to shareholders in the form of a dividend or conducting a stock repurchase. |
