Sharp will miss deadline to receive $60M payment
Monday, March 18, 2013
Sharp Corp. said it will miss a March 29 deadline to receive the second half of a $120 million investment from Qualcomm Inc. after it failed to complete a plan to begin fabricating power-saving screens the two companies are jointly developing, Reuters reported.
Qualcomm, which paid half the $120 million in December, set conditions for the remainder that included having completed the specifications for the smartphone and tablet PC screens and preparations for their production. San Diego-based chipmaker Qualcomm also said Sharp would have to make an operating profit in the second half of its business year and have at least $1.05 billion of net assets.
"The financial targets are not the reason for the delay," Sharp spokeswoman Miyuki Nakayama said.
Sharp and Qualcomm will now fall back to a June 30 deadline for the Japanese company to meet conditions for the second payment. Sharp operates Sharp Microeconomics of the Americas and Sharp Laboratories in Camas.