Handspring's Waiting Public

Electronic News, April 10, 2000 by Jerry Ascierto

Spurred on by Palm Computing Inc.'s outrageously successful initial public offering (IPO), Handspring, a maker of handheld organizers, recently filed with the Securities and Exchange Commission for its own IPO. The IPO is expected to generate $300 million for the fledgling Mountain View, Calif.-based firm. Launched in November 1998 by Palm Computing co-founders Donna Dubinsky and Jeff Hawkins, the company rolled out its flagship device, the Visor, in October 1999. Based on the Palm operating system, which Handspring has licensed through 2003, the Visor provides similar functionality to Palm's handheld with the sole addition of an expansion slot, dubbed the Springboard. The slot allows Springboard-enabled cartridges, such as cards for digital camera or an MP3 player, to be plugged quickly into the system to expand its capabilities. Three cartridges are currently available from Handspring, with more anticipated in the coming months. Credit Suisse First Boston, Merrill Lynch, Donaldson Lufkin & Jenrette, and U.S. Bancorp Piper Jaffray will underwrite the IPO.

Silicon Image Buys DVDO

Silicon Image Inc. recently reached a deal to acquire DVDO Inc., a privately held company that provides digital video processing semiconductors for the consumer electronics industry. Silicon Image, a maker of high-bandwidth semiconductor devices, said the merger gives the company a stronger presence not only in the PC market, but also in emerging digital consumer electronics applications such as digital TVs, DVD players, and set-top boxes for high-definition video. The transaction will be accounted for as a purchase and is expected to close in the quarter ending June 30, the Sunnyvale, Calif.-based company said. When the deal is closed, Silicon Image will issue common stock, currently estimated at about 585,000 shares, in exchange for all outstanding options of DVDO. Silicon Image acquires all of Campbell, Calif.-based DVDO's technology, technical expertise, and intellectual property in digital video processing algorithms and semiconductor development. That will allow Silicon Image to aggressively pursue the growing population of host and display applications in the consumer electronics market, the company said. Silicon Image plans to incorporate functionality from DVDO's technology into its existing line of PanelLink products. DVDO employees will relocate to Silicon Image's Sunnyvale offices once the transaction is completed.

New Toshiba Sensor

Toshiba Corp. has developed a CMOS image sensor that incorporates an analog-to-digital converter. Available in color (TCM5033T) and black and white (TCM5030T), the sensor is designed for cell phones and other portable devices with built-in cameras, the company said. Along with the CMOS image sensor, Toshiba also introduced a complementary digital signal processor (TC90A70F) that allows for simple construction of a color digital camera system. The level of contrast and reduced noise produces a picture that is fully compatible with the Video Graphics Array (VGA) standard for video conferencing, Toshiba said. The company's pixel-cell circuit structure shrinks cell size and achieves new levels of integration by incorporating photodiodes and transistors into a 5.6 square micron cell. The sensor's VGA-compatibility meets the format's specification for a 640-horizontal x 480-vertical pixel frame with an effective pixel count of approximately 330,000 pixels. The sensor incorporates a signal generator and the black and white versions of the sensor do not need peripheral devices to configure a digital camera system, the company said. Samples of the sensors are available priced at $33 for color versions and $28 for black and white. Sample chipsets including the color image sensor and the digital signal processor cost $43 each. Volume production is slated to begin in June.

Kopin in JVC's Palm

JVC (Victor Company of Japan Ltd.) has expanded its orders for Kopin Corp.'s miniature flat-panel CyberDisplay, according to the Taunton, Mass.-based Kopin. The displays are destined for JVC's palm-sized GR-DVL digital camcorders, which currently are being shipped to consumer electronics stores in the United States. For Kopin, the order represents its second from Yokohama, Japan-based JVC. In mid-1999, the camcorder giant began using Kopin's CyberDisplay in its CyberCam line.

Coollogic Launches Palm-Like Internet Appliances

Coollogic Inc., Dallas, recently launched its e-Pilot 7000 Series Internet- access appliances. The e-Pilot 7000 series incorporates an advanced embedded Linux operating system made to fit the small, memory-lean requirements of the set-top box. The new set-top box, part of the e-Pilot 7000 Series, will be sold to Internet Service Providers (ISPs) and Vertical Market Integrators (VMIs), the company said. It will be bundled with Coollogic's Internet Ready solution and Coollinux, the company's embedded Linux OS software. The e-Pilot includes full Java and JavaScript support. Other features include SSL (secure socket layer), 56K modem, Ethernet, and third-party plug-ins, such as Real Audio and Flash.