Digital media software and firmware developer, Arcsoft Inc., plans to raise $46 million through an IPO on Nasdaq.
The Fremont, California-based company says there has been a significant increase in consumer and business demand for digital technologies that provide flexibility in the creation, editing, storage, presentation and distribution of media content.
While PCs have traditionally served as the primary platform, improved technology has enabled users to access and share digital media content on smaller devices, such as mobile phones, consumer electronics and home entertainment devices.
But this needs enabling technologies that can support all forms of digital media content and it says that manufacturers outsource development to third parties. Arcsoft argues there is an opportunity for a single provider with the technological expertise to provide a comprehensive and cost-effective OEM solution.
The company boasts a blue chip list of OEM customers including Canon, Epson, Hewlett-Packard, Panasonic, Motorola, Nikon and palmOne.
In the year to June 30, it made a net loss of $536,000, down from income of $1.9 million on revenue 17.3% higher at $22.1 million.
In the photo device market, it says its competitors include Adobe, Roxio and Ulead Systems. In the video device market, it is up against CyberLink, InterVideo, Pinnacle and Sonic Solutions. Arcsoft warns that developers of operating system software, including Microsoft and Apple Computer, may include features and functionality within new product releases that might compete with its products.
It has cut research and development costs with a development center in Hangzhou, China, where it relies on Zhejiang University as a source of engineers and scientists.