CyberLink expects its stake in Perfect, its spin-off developer of SaaS AI- and AR-powered beauty and fashion solutions such as virtual makeup and jewelry, to be valued at US$366 upon Perfect's listing on Nasdaq, and that listing is planned for the third quarter of 2022, said CyberLink chairman and CEO Jau Huang at a recent investor conference.
Perfect has entered a definitive agreement and plan for merging with Nasdaq-listed SPAC (special purpose acquisition company) Provident Acquisition that sets the enterprise value of Perfect at US$1.02 billion, Huang said. After the merger, Perfect will be surviving company and will be listed on the Nasdaq, Huang noted.
CyberLink has cumulatively invested US$36 million in Perfect and, in addition, will participate in SPAC IPO concurrent PIPE (private investment in public equity) via an investment of US$3 million, Huang indicated. Thus, the estimated value of US$366 million for CyberLink's stake in Perfect is 9.38 times the total investment of US$36 million plus US$3 million.
CyberLink has adopted an equity method to recognize a total loss of NT$796 million (US$28.6 million) from investing in Perfect. Consequently, CyberLink suffered net loss of NT$708.5 million despite an operating profit of NT$51.2 million on consolidated revenues of NT$408.5 million for the fourth quarter of 2021.
Of 2021 consolidated revenues of NT$1.577 billion, B2B OEM shipments for bundled sales with PCs and optical disc drives accounted for 40.7%, B2C PC Create series for 37.1%, mobile Apps for 18.5%, and the in-house-developed facial recognition engine FaceMe and U Communication suite for 3.6%.
CyberLink began to shift B2C business from purchase-based to subscription-based and to develop smartphone-based mobile Apps of originally PC-based software used to edit and create video in 2018. Cyberlink saw subscription-based sales revenues hike from NT$3.0 million in 2018 to NT$23.3 million in 2021 and sales revenues from mobile Apps increase from NT$2.3 million to NY$10.4 million.
CyberLink chairman and CEO Jau Huang
Photo: Digitimes file
Article translated by Adam Hwang
