Opto Circuits’ arm Cardiac Science has won USD 23 milion from Zoll in a legal case involving Wearable Defibrillator Technology patent, Vinod Ramnani, Chairman and Managing Director, Opto Circuits told CNBC-TV18.
This one time payment would be used to reduce the debt of the company, he said.
The company is also going to use the proceeds to launch a new product line up, Ramnani added.
Below is the transcript of Vinod Ramnani's interview with Reema Tendulkar & Nigel D'Souza on CNBC-TV18.
Reema: We understand that one of your group companies has been awarded USD 23 million in a case with respect to Zoll over the defibrillator technology. Can you give us some details, USD 23 million which you won which is going to be awarded to you in lost royalties, this is over a what past period and going forward what will be the royalties every year?
A: The point is that we have a technology and we are IT company. So Zoll was sold to Asahi for about USD 2 billion and majority of the business is coming from the technology they got from us. We just won this unanimously from 12 member jury.
Reema: Just to understand some details about this USD 23 million to get in some numbers, this is over what period do you win USD 23 million, over one year period or two years period?
A: When we bought the company, this case was going-on and then over the period of time we signed the deal with the company they acquired and this is accumulative royalty they were supposed to pay us. Then Zoll was acquired by the Asahi-Japan for approximately USD 2 billion and they refused to do that and then ultimately we won the lawsuit with the jury. USD 23 million will come to the company which will make it healthier and we can go forward with it.
Nigel: So this is a one-time payment that you will receive?
A: Yes.
Nigel: When does this money come into your books, what will it be used for, what is your current debt?
A: Debt is different but then we will have working capital, the money comes into the system and then we can go with. We had a stress for last two-three years that will ease out our working to some extent.
Reema: So you will use this entire Rs 130-140 crore amount to pay debt?
A: Debt plus the new product line and few more products are there in the pipeline.
Nigel: Could you tell us what is your current debt and how much will you be looking to bring it down by, what is your current debt?
A: Debt is one thing which we have the arrangements for.
Nigel: Would you give us that number?
A: The valuation of the company is huge. So the point is that down the line, we will be able to take care of all the debt.
Reema: Just to understand it and get it clear, this USD 23 million is a one-time payment for past royalty, going forward you will not be getting any royalties from Zoll, right?
A: But then we are going to launch our own products.
Reema: But there will be no royalties that you will get?
A: Yes, but then we will have our own products. Zoll has the majority of the business coming from their product and they will be sold to Asahi-Japan for USD 2 billion.
Reema: You will be launching a competing product?
A: Yes.
Reema: When will that launch take place and what is the kind of opportunity you expect?
A: We are working on it.
Nigel: With regard to an outlook for FY16, last year you did around Rs 1,200 crore on the topline, give us some guidance for the coming year?
A: I think it should just get better. I cannot give the numbers but that just goes from here.
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