Last checked at 8 Dec 2009 07:00
8 December 2009
Carclo plc
("the group")
Agreement with Atmel Corporation
Carclo plc and its wholly owned subsidiary, Conductive Inkjet Technology Limited ("CIT"), are pleased to announce that they have signed a binding agreement with Atmel Corporation ("Atmel") for the development and launch of an innovative new touch screen product based upon CIT's patented photolithographic metallisation film. Atmel (NASDAQ: ATML) is a worldwide leader in the design and manufacture of capacitive touch screen solutions and microcontrollers with a broad portfolio of related intellectual property. The product will be developed for use in mobile phones and other electronic devices.
CIT will be installing a new production line at its Cambridge facility to produce touch screen sensors with copper lines so fine that they are nearly invisible to the human eye. The production line will be operational in the second half of 2010 and volume production will commence in 2011.
Under the terms of the agreement, Atmel will make a US$1 million payment to CIT to secure preferential access to CIT's production capacity and technology. US$500,000 will be paid immediately and two payments of US$250,000 will follow subject to the achievement of certain milestones associated with the development of the CIT production line. To preserve the preferential access to this capacity, Atmel has agreed to minimum annual volume targets for calendar years 2011 and 2012.
These targets will support our current expectations for the financial year to March 2011. Furthermore, if the minimum targets are achieved, there will be a material positive impact on group profits for the financial years to March 2012 and 2013.
CIT is now commercialising rapidly and this major joint development contract underlines our confidence that it will generate substantial value for our shareholders.
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For further information please contact:
| Carclo plc | 01924 268040 |
| Ian Williamson, Chief Executive | |
| Robert Brooksbank, Finance Director | |
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| Weber Shandwick Financial | 020 7067 0700 |
| Terry Garrett / Stephanie Badjonat / Clare Thomas |
About Carclo plc
Carclo plc is a technology led plastics group. It is a public company whose shares are quoted on the London Stock Exchange.
Two thirds of sales are derived from the supply of fine tolerance, injection moulded plastic components, which are used in medical, optical and electronics products. This business, Carclo Technical Plastics, operates internationally in a fast growing and dynamic market underpinned by rapid technological development.
A third of sales are derived from the supply of specialised precision products to the premium automotive and aerospace industries. Carclo is a leader in the development of high power LED lighting for supercars.
Carclo's strategy is to develop new technologies and products to drive future growth. Its investment in Conductive Inkjet Technology is at the heart of the newly emerging market for very low cost printed electronics.
About Atmel
Atmel (NASDAQ: ATML) is a worldwide leader in the design and manufacture of capacitive touch solutions, microcontrollers, advanced logic, mixed-signal, nonvolatile memory and radio frequency (RF) components. Leveraging one of the industry's broadest intellectual property (IP) technology portfolios, Atmel is able to provide the electronics industry with complete system solutions focused on consumer, industrial, security, communications, computing and automotive markets.
Forward looking statements
Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual events to differ materially from any expected future events or results referred to in these forward looking statements.