A $60 million payment to Sharp from Qualcomm as part of an investment agreement has been delayed, due to a looming deadline set to be missed. The second half of the $120 million deal had a number of requirements in order to be paid on time, including making an operating profit in the second half of its financial year, holding net assets worth at least 100 billion yen ($1.05), and to prepare for the production of new display panels, requirements which Sharp has failed to accomplish.
The agreement, made with Qualcomm subsidiary Pixtronix, needed Sharp to complete specifications for new tablet and smartphone panels based on IGZO and MEMS technology, potentially resulting in bright and sharp panels that require a fraction of the power used in current displays. The specifications need to be finalized by March 29th, but this will apparently not be possible, according to Reuters.
A company spokeswoman for Sharp told the news agency “The financial targets are not the reason for the delay,” suggesting that the product development requirements were the main issue. A new deadline has been set for June 30th with the same $60 million second payment being Sharp’s reward.
