Syntax-Brillian Corp., a maker of high-definition LCD televisions and digital cameras, announced today that it will sell its liquid crystal on silicon (LCoS) microdisplay operations in Tempe for an undisclosed amount.

Under the terms of the agreement, the Tempe-based company will retain all patents and intellectual property associated with LCoS but will license the technology to Compound Photonics Ltd. in exchange for a partial stake in that company. Compound Photonics, which is based in Cambridge, England, and has an office in Portland, Ore., will use its equity to acquire the LCoS manufacturing equipment and inventory and will assume the lease on the portion of the Tempe facilities used in the LCoS operations.

The agreement comes less than a week after Syntax-Brillian announced its intent to close or divest the LCoS business through a possible sale, a move President and CEO James Li said would reduce operating expenses by $16 million a year.

"While the LCoS technology shows considerable longer-term promise, we believe we are at a strategic inflection point in the growth of the worldwide market for LCD televisions; thus, for the purpose of enhancing corporate profitability, we have decided to focus on and concentrate our resources in the LCD business," Li said.

The deal is expected to close in November.

For more information, visit: www.syntaxbrillian.com