QPC Announces $12 Million Development and Production Order for Laser Television Applications
Exclusive Arrangement with Consumer Electronics Manufacturer for BrightLase(R) Lasers for Use in DLP and LCOS, Rear Projection TVs;
Initial Production Order Valued at $11 Million over 3 YearsSYLMAR, Calif.--(Business Wire)--QPC Lasers, Inc. (OTCBB:QPCI) "QPC," a world leader in thedevelopment and commercialization of high brightness, high powersemiconductor lasers for the consumer, industrial, defense, andmedical markets, today announced that it has won a major contract todevelop and deliver lasers to be used in rear projection televisionsbased on DLP and LCOS technologies. The order for QPC's proprietaryBrightLase(R) semiconductor lasers comes from an internationalmanufacturer of consumer electronics. The contract also provides foran exclusive supply relationship that, depending on the size of therear projection TV market, carries a value of up to $230 million overthe 10 year term of the contract. "This contract marks the successful expansion of QPC's technologyinto the large and growing market for visible wavelength technology,"said QPC co-founder and CEO Dr. Jeffrey Ungar. "Utilizing our highpowered, compact, and cost effective semiconductor laser technology,these rear projection laser televisions will offer a dramaticallyimproved viewing experience compared to other older and/or moreexpensive technologies available today such as those based on lamps,plasma, LCDs, and conventional cathode ray tubes. Consumers shouldenjoy substantially more vibrant, life-like colors with the highresolution and wide viewing angles from a lightweight, less expensive,slimmer profile unit." "Major consumer electronics manufacturers such as Sony Corp. andMitsubishi have exhibited laser TV prototypes in the recent past,however, we are not aware of any Laser TV's that are currentlyavailable for consumer purchase. We believe that QPC's lasertechnology should enable a more rapid ramp to production andavailability to consumers," said Dr. Paul Rudy, QPC's Senior VP ofMarketing & Sales. "This contract award not only signals QPC's entry into themulti-billion dollar high growth consumer electronics sector for LaserTV, but opens up numerous possibilities for utilization in a widevariety of display applications including miniature mobile projectorsfor mobile phones, PDAs, and laptops, along with displays forautomobiles and cockpits. Our technology offers high-speed directmodulation, low power consumption, and low cost in high volumeproduction. We believe that QPC can become a leader in providinglasers for a new generation of consumer electronics displays, and arecommitted to realizing this vision," added Dr. Ungar. Pursuant to the contract, QPC expects to receive developmentmilestone payments of up to $1,150,000 over the next 90 days. QPC alsoreceived an order that becomes non-cancellable once productspecifications have been met, totaling approximately $11,000,000 forproducts to be delivered through June 2011. "We anticipate recognizing initial milestone revenues from thiscontract in the fourth quarter of this year, and expect deliveriesunder the $11 million purchase order to be spread out over the nextthree years," said George Lintz, QPC co-founder and CFO. "QPC's BrightLase(R) semiconductor lasers offer an ideal solutionbecause of the high power achievable in a single beam from a tiny,energy efficient, low cost chip," Dr. Ungar noted. "QPC's compact andefficient laser design offers a replacement to the expensive, shortlived, and inefficient UHP lamps that are common engines inconventional display technology. While LED's have also been used forthis application, we believe lasers offer higher brightness andimproved energy efficiency. Alternative laser approaches based onconventional multi-stage lasers and lower power multiple beam diodelasers are also costly, inefficient, and difficult to manufacture inhigh volume." QPC previously demonstrated its green laser based on frequencydoubling of its proprietary BrightLase(R) single-mode lasertechnology. (See prior announcement, September 18, 2007.)BrightLase(R) single-mode lasers produce single frequency outputpowers exceeding 8 Watts continuous wave and peak conversionefficiencies greater than 50% in the near infrared. For highreliability, these products are assembled using state-of-the-arthard-solder processes and thermally expansion-matched mounts. For moreinformation, on BrightLase(R) technology, see www.QPClasers.com. Forward Looking Statements This release contains forward looking statements about our futureprospects that reflect the current expectations of the Company'smanagement. These expectations are based upon information currentlyavailable to Company management, as well as management's estimates andassumptions regarding future events. The words "anticipate","believe", "estimate", "expect", "future", "intend", "plan" or thenegative of these terms and similar expressions identify forwardlooking statements. Such forward looking statements are subject torisks, uncertainties, assumptions and other factors that could causethe Company's actual results to differ materially from those expressedin the forward looking statements. Our expectations with respect tothe contract discussed in this release could be materially affected by
(i) our inability to develop products that conform to agreedspecifications, (ii) unexpected delays encountered in the developmentand production of the lasers which are the subject of this contract,
(iii) the development of competing products or technologies whichprovide superior performance to our products, (iv) challenges to ourintellectual property rights as they relate to the products covered bythis contract, (v) cancellation of outstanding purchase orders, (vi)difficulties encountered in ramping up production to meet the purchaseorders received under this contract and (vii) unexpected financialdifficulties encountered by the counterparty to the contract. For moredetailed information about the risk factors which affect our businessoperations and future prospects, see the section entitled "RiskFactors" in our reports filed with the Securities and ExchangeCommission, including our report on Form 10-QSB for the period endedSeptember 30, 2007. About QPC Lasers, Inc. QPC Lasers, Inc. (www.QPClasers.com) is a world leader in thedevelopment and commercialization of high-brightness, high-powersemiconductor lasers for the defense, homeland security, industrial,and medical markets. Founded in the year 2000, QPC is verticallyintegrated from epitaxy through packaging and performs all criticalfabrication processes at its state-of-the-art high-technology facilityin the Los Angeles suburb of Sylmar, CA. QPC is a publicly traded U.S.company (OTCBB:QPCI) and is ISO certified. To receive public information, including press releases,conference calls, SEC filings, profiles, investor kits, News Alertsand other pertinent information please click on the following link:http://www.b2i.us/irpass.asp?BzID=1392&to=ea&Nav=0&S=0&L=1QPC Lasers, Inc.818-986-0000info@QPClasers.comwww.QPClasers.comorInvestor Relations:MKR Group, Inc.Marie Dagresto or Todd Kehrli, 323-468-2300QPCI@mkr-group.comCopyright Business Wire 2007
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