HTC 2007 Annual Report Download - page 103

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AN OVERVIEW OFTHE COMPANY'S FINANCIAL STATUS
201200
30. OTHER EVENTS
> Don
a
t
i
on
The Company donated NT$300 million in 2005
and NT$300 million in 2006 to the High Tech
Computer Foundation; and NT$300 million
(US$9,251 thousand) in 2007 to the HTC
Education Foundation for Social Welfare Charity
to help the disadvantaged minority, teenagers
and other people in need.
> Pur
c
h
a
s
e
o
f
Ass
e
t
s o
f
Dopod In
t
e
rn
a
t
i
on
a
l
In
c
.
In May 2007, the board of directors of the
Company signed an acquisition agreement with
Dopod International Inc. ("Dopod") to buy all of
the assets of nine of Dopod's subsidiaries:
Dopod Taiwan, Dopod Hong Kong, Dopod
Singapore, Dopod Malaysia, Dopod Indonesia,
Dopod Australia, Dopod Thailand, Dopod India,
and Dopod Philippines.
The purchase price will depend on the book
value of the net assets of Dopod's subsidiaries.
These assets had been audited by independent
certified public accountants as of June 30, 2007.
The Company estimates that the purchase price
will not exceed US$14.5 million dollars. On July
1, 2007, the transfer of all of the subsidiaries'
assets to the Company was completed. As of
January 18, 2008, the date of the accompanying
independent auditors'report, the approved
purchase price is US$12.2 million.
31. SEGMENT IN
F
ORMATION
> Indus
t
ry Typ
e
The Company mainly manufactures and sells
converged handheld devices.
>
F
or
e
i
gn Op
e
r
a
t
i
ons
Because sales to unaffiliated customers and
identifiable assets of foreign segments were
less than 10 percent of that of the Company, the
Company was exempt from disclosing
information on foreign operations.
> Expor
t
R
e
v
e
nu
e
s
Export revenues in 2005, 2006 and 2007 were
as follows:
2005 2006 2007
Customer NT$ NT$ NT$ US$ (Note 3)
Asia $ 7,392,835 $ 7,683,450 $ 11,669,749 $ 359,844
America 28,589,561 48,865,122 49,384,718 1,522,810
Europe 29,017,671 38,873,000 47,001,417 1,449,319
Others 5,574,579 6,771,781 7,769,880 239,589
$ 70,574,646 $ 102,193,353 $ 115,825,764 $ 3,571,562
> M
a
j
or Cus
t
om
e
rs
Sales to major customers were as follows:
2005 2006 2007
Customer NT$ NT$ NT$ US$ (Note 3)
A $ 8,518,175 $ 13,372,184 $ 19,710,823 $ 607,796
B 14,965,913 17,839,399 16,931,462 522,093
C 5,067,341 12,326,693 15,942,551 491,599
D 7,448,551 10,335,852 12,592,997 388,313
$ 35,999,980 $ 53,874,128 $ 65,177,833 $ 2,009,801
VI
D
e
s
c
r
i
p
t
i
on
Authorization to use embedded operating system; royalty payment based on agreement.
Authorization to use GSM system software; royalty payment based on agreement.
Authorization to use CDMA technology to manufacture and sell units; royalty payment
based on agreement.
Authorization to use EDGE reference design license and support agreement; royalty
payment based on agreement.
Authorization to use platform patent license agreement; royalty payment based on
agreement.
Authorization to use wireless technology, like GSM; royalty payment based on agreement.
Authorization to use TDMA and CDMA technology; royalty payment based on agreement.
GSM/DCS 1800/1900 Patent License; royalty payment based on agreement.
TDMA, NARROWBAND CDMA, WIDEBAND CDMA or TD/CDMA Standards patent license
or technology; royalty payment based on agreement.
Authorization to use GSM, GPRS or EDGE patent license or technology; royalty payment
based on agreement.
Authorization to use GSM, GPRS or EDGE patent license or technology; royalty payment
based on agreement.
Authorization to use GSM, GPRS, EDGE, CDMA or WCDMA patent license or technology;
royalty payment based on agreement.
Con
t
r
a
c
t
or Con
t
r
a
c
t
T
e
rm
Microsoft January 1, 2007-January 31, 2009
Texas Instruments France January 14, 2000-January 13, 2010
Qualcomm Incorporated December 20, 2000 to the following dates:
(a) If the Company materially breaches any covenant and fails to take
remedial action within 30 days after Qualcomm s issuance of a
written notice, the Company will be prohibited from using
Qualcomm s property or patents.
(b) Any time when the Company is not using any of Qualcomm s
intellectual property, the Company may terminate this agreement
upon 60 days prior written notice to Qualcomm.
Ericsson Mobile Platform AB April 2003-March 2011
Telefonaktiebolaget LM Ericsson December 15, 2003 to the expiry dates of these patents, and no longer
than December 14, 2008
Nokia Corporation January 1, 2003 to the expiry dates of these patents.
InterDigital Technology Corporation. December 31, 2003 to the expiry dates of these patents.
KONINKLIJKE PHILIPS ELECTRONICS N.V.
January 5, 2004 to the expiry dates of these patents
Motorola, Inc. December 23, 2003 to the latest of the following dates:
(a) Expiry dates of patents
(b) Any time when the Company is not using any of Motorola's
intellectual property,
ALCATEL/TCL & Alcatel July 1, 2004-June 30, 2009
Siemens Aktiengesellschaft July 1, 2004 to the expiry dates of these patents.
Lucent Technologies GRL LLC July 1, 2004-June 30, 2009
29. SIGNI
F
ICANT CONTRACTS
> P
a
t
e
n
t
Agr
ee
m
e
n
t
s
To enhance the quality of its products and
manufacturing technologies, the Company has
patent agreements, as follows:
28. COMMITMENTS AND CONTINGENCIES
As of December 31, 2007, unused letters of credit
amounted to £47 thousand.
FINANCEI CONSOLIDATED REPORT
l