Financier Lip-Bu tan and CFO Geoff Ribar – A trail of failed businesses
CDNS Cadence CEO Lip-Bu Tan, CFO Geoff Ribar, together again after SiRF, Centrality and Telegent disasters.
· 2007: SiRF acquires Lip-Bu Tan-controlled Centrality for $280 million, SiRF stock price at $22
· 2008: After SIRF CFO Ribar announces 98% revenue drop SiRF stock plunges to $7
· 2009: Lip-Bu Tan-controlled Telegent files for IPO
· 2010: Telegent CFO Ribar pulls IPO
· 2011: What do Cadence CEO Lip-Bu Tan and Cadence CFO Ribar have in mind for CDNS ?
The SiRF disaster: It’s all in the SEC filings. We just connected the dots for you.
Most notable was the impairment charges after each acquisition: for example, essentially Centrality was written off for goodwill of $216m plus another $43m in asset write downs right after the acquisition.
The Centrality acquisition constituted a large cash gift to Financier Lip-Bu Tan.
Meanwhile, investors saw the SiRF stock price go from $36.15/share to $0.94/share under CFO Ribar’s and BOD chairman Lip-Bu Tan watch.
What happened at Telegent, the most anticipated IPO of 2010 of a once-high-flying silicon valley startup ?
CDNS investors should demand answers to Financier Lip-Bu Tan, who still owns Telegent through his Chinese venture firm Walden International, and Telegent CFO Ribar, who pulled the IPO.
In 1999, Nvidia also pulled its IPO after ousting its CFO Geoff Ribar.
What is going on ?
Factual Data:
Sirf Acquires Centrality
Venture-backed Centrality Communications Inc., a maker of chips used in mobile navigation devices, has agreed to be acquired by publicly traded SiRF Technology Holdings for $283 million in cash and stock.
SiRF Technology Holdings, of San Jose, Calif., has agreed to acquire Centrality Communications, a maker of chips for mobile navigation, for $283 million in stock and cash.
Centrality Communications, of Santa Clara, Calif, had raised roughly $50 million in venture capital, including from Acer Venture Partners, Enspire, Focus Ventures, Harbinger Venture Management, iD SoftCapital, Menlo Ventures, Venture Tech Alliance and Walden Internatonal.
Centrality ownership structure: Walden International participated in $20m series D funding 12/05, Walden Chairman: Lip-Bu Tan
Sirf CFO: Geoff Ribar
Sirf Stock Price on day of Centrality acquisition (06/21/07): $21.53
Sirf stock price one year after Centrality acquisition (06/20/08): $5.74
February 2008 Class Action Lawsuit (SirF CFO Ribar named as defendant)
"The Complaint alleges that the defendants' false and misleading statements regarding demand for its products and its acquisition of Centrality Communications, Inc. ("Centrality") in August 6, 2007 caused SiRF stock to trade at artificially inflated levels throughout the Class Period. The Complaint further alleges that, as a direct result of defendants' delayed public revelations in a February 4, 2008 press release concerning the truth about demand for SiRF's products and its actual business prospects, SiRF's stock price tumbled by more than 50% on February 5, 2008."
Historical data:
June 21 2007
Sirf Acquires Centrality for US$237m
Sirf Stock Price: $21.35
Aug 6th, 2007 – Centrality acquisition complete
Sirf Stock Price: $18.83
Oct 21 2007
http://www.sec.gov/Archives/edgar/data/1163943/000119312507229630/dex991.htm
SirF stock Price: $24.95
http://www.sec.gov/Archives/edgar/data/1163943/000119312507238470/d10q.htm
Dec 3 2007
SEC criticizes accounting policies, questions valuation of Centrality (page 4), questions GAAP accuracy of Q307 quarter results
Sirf stock Price: $24.04
Feb 4 2008 – Sirf Announces dismal Q407 results, 89% earnings drop
SirF stock price: $16.27
Volume: 7,971.205
Feb 5 2008
Sirf Stock Price (close) : $7.35
Volume: 63,049,260
SiRF shares wiped out:
http://www.forbes.com/2008/02/05/sirf-technologies-GPS-markets-equity-cx_lal_0205markets24.html
February 14 2008 – 12 lawfirms have filed class action lawsuits against SiRF
Abraham, Fruchter & Twersky, LLP Files Class Action Suit Against SiRF Technology Holdings, Inc.
“The Complaint alleges that the defendants' false and misleading statements regarding demand for its products and its acquisition of Centrality Communications, Inc. ("Centrality") in August 6, 2007 caused SiRF stock to trade at artificially inflated levels throughout the Class Period. The Complaint further alleges that, as a direct result of defendants' delayed public revelations in a February 4, 2008 press release concerning the truth about demand for SiRF's products and its actual business prospects, SiRF's stock price tumbled by more than 50% on February 5, 2008.”
March 31, 2008
Sirf Stock Price (close): $5.31
Of course Sirf/ribar/Tan rapidly settled for pennies on the dollar
CSR Acquisition of SiRF
Sirf after paying $280 million for Centrality is merged with CSR at a value of $136m.
Also available at http://svleaks.wordpress.com/2011/03/18/financier-lip-bu-tan-and-cfo-geoff-ribar-–-a-trail-of-failed-businesses-2/
