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Nature of Operation
9 Months Ended
Sep. 30, 2011
Nature of Operation, Basis of Presentation and Balance Sheet Components [Abstract] 
Nature of Operation

1. NATURE OF OPERATIONS

Trident Microsystems, Inc., (including its subsidiaries, referred to collectively in this Report as “the Company”) with headquarters in Sunnyvale, California, is in the digital home entertainment market, delivering an extensive range of platform solutions that enhance the consumer experience in the Connected Home and select Consumer Electronics (CE) products. As one of the top semiconductor providers to both the TV and set-top box markets, Trident’s solutions can be found in the products of leading OEMs and channel partners worldwide. The company’s extensive IP portfolio has been driving key innovations in image quality, 3D TV, audio, low power, and 45nm designs.

Liquidity and Management Plans

As of September 30, 2011, the Company had an accumulated deficit of $316.8 million. The Company has incurred operating losses and generated negative cash flows for the last three years. As of September 30, 2011, the Company had cash and cash equivalents of $35.9 million and working capital of $43.1 million. Cash used in the nine months ended September 30, 2011 was $57.3 million. Given the loss of a significant expected intellectual property licensing and engineering transaction, delays in mass production of new programs, the continuing costs of the Company’s previously announced restructuring activities and a soft consumer electronics market, the Company anticipates that the quarterly loss in the fourth quarter will be at least as large as what the Company has seen over the past year, further eroding the Company’s cash position. The Company’s near term liquidity has been negatively impacted by these factors and it will be required to secure additional sources of cash sooner than previously expected. The Company’s current expectation is to successfully develop strategic alternatives to improve near term liquidity. However, the Company can make no assurances and there is uncertainty regarding the Company’s ability to maintain liquidity sufficient to operate its business effectively over at least the next twelve months, which raises substantial doubt as to its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.