After the deadline, Sharp is without money from Qualcomm

Sharp has announced that it will not meet the deadline of March 29 to receive the second half of an investment of $ 120 million from Qualcomm, for not being able to complete a plan to start manufacturing energy-saving screens that companies are developing together. Qualcomm, which made half of the investment in December, stipulated conditions for the disbursement of the remaining money, how to complete the specifications of screens for smartphones and tablets.
The chip maker Qualcomm, based in San Diego, also stipulated that the Sharp should make operating profits in the second half of its fiscal year and have at least 100 billion yen ($ 1.05 billion) in net assets.
"The financial targets are not the cause of the delay," said Miyuki Nakayama, spokesman for Sharp. Sharp and Qualcomm have set June 30 as the new date for which the Japanese company complies with the conditions for the second payment, she added.
The two companies announced in December that Qualcomm, through its subsidiary Pixtronix, would work with Sharp to develop new energy-saving screens, based on the company's Japanese Igzo technology.
The inability to meet the second deadline will increase the pressure on the Sharp, facing cash problems and seeks resources to fund the payment of an emission of debentures convertible $ 2.1 billion that WINS in September. The biggest Japanese manufacturer of LCD panels also flopped in the renegotiation of an agreement with Hon Hai, Taiwan, which would acquire 9.9 percent of its shares.