DALSA Corporation

[UrbanWaterloo]

DALSA Smart Camera Wins Test & Measurement World Magazine's 2010 Best in Test Award
BOA Camera selected for Prestigious Award in Machine Vision and Inspection category
WATERLOO, ONTARIO--(Marketwire - April 12, 2010) - http://www.marketwire.com/press-rele...SA-1146131.htm

DALSA Corporation (TSX: DSA) was recently honored in an awards ceremony hosted by the editors of Test & Measurement World magazine when the company's BOA Vision System received the 2010 Best in Test award in the Machine Vision and Inspection category. The BOA Vision System is a highly integrated smart camera with all of the elements of an industrial machine vision system. BOA is easy to use and flexible and offers advanced vision capabilities that are easy to integrate at an affordable price, while consuming very little space and power.

The Best in Test awards are presented annually by the editors of Test & Measurement World to honor important and innovative new products and services in the electronics test and measurement industry. Test & Measurement World announced the finalists for the 2010 awards in its December/January issue, and the winner of each category was then selected by a vote of readers and editors. The Best in Test award winners were announced on April 1, followed by an awards ceremony earlier this week.

"BOA has set a new industry benchmark for smart cameras," states Steve Geraghty, director of DALSA's Industrial Products group. "We are honored that Test & Measurement World has chosen to acknowledge the BOA smart camera with their Best in Test award. Since the BOA was introduced last October, it has gained significant traction in the industry and has achieved several design wins for interesting machine vision applications."

DALSA's new BOA smart camera has generated a lot of keen interest," says Simon-Julien Elie, Machine Vision Engineer at Rotalec in Montreal, Canada. "With its compact size, on-board processing, and versatile, easy-to-use application software, BOA is quickly proving itself a very competitive option to the larger more cumbersome smart camera platforms available today."

DALSA has recently launched a color model for the BOA family, and is planning to add high resolution models as well. For a downloadable image of the BOA vision system, please visit our online media kit, and to see the BOA smart camera in action, view our video demonstration.

Test & Measurement World covers the global electronics testing industry, providing how-to information to 65,000 engineers who test, measure, and inspect electronic devices, components, and systems. Test & Measurement World is published 11 times per year by Reed Business Information and has an extensive online community at www.tmworld.com.

About DALSA Machine Vision Products and Services
For more than 25 years DALSA has led the design, manufacture and deployment of digital imaging components for the machine vision OEM market, and now also offers end-user machine vision solutions for factory floor deployment. DALSA image sensors, cameras, smart cameras, frame grabbers, software, and Vision Appliances are used in thousands of automated optical inspection (AOI) systems around the world and across multiple industries including semiconductor, solar cell, flat panel display, electronics, automotive, medical, packaging and general manufacturing.
www.dalsa.com/mv

About DALSA Corporation
DALSA (TSX: DSA) is an international leader in high performance digital imaging and semiconductors with approximately 1000 employees worldwide, headquartered in Waterloo, Ontario, Canada. Established in 1980, the company designs, develops, manufactures and markets digital imaging products and solutions, in addition to providing semiconductor products and services.
www.dalsa.com

[UrbanWaterloo]

DALSA Reports $49.9 Million in Revenue and $0.20 EPS in Q1 2010
Posted 4/28/2010 - http://www.dalsa.com/corp/news/news.aspx?itemID=236
PDF: http://www.dalsa.com/public/corp/inv...Q1_release.pdf

Waterloo, Ontario April 28, 2010 - DALSA Corporation (TSX: DSA), an international leader in high performance digital imaging and semiconductors, today reported revenue from continuing operations of $49.9 million for the quarter ended March 31, 2010, and net income from continuing operations of $3.7 million or $0.20 per share, diluted. The Company also declared a 20% increase to the quarterly dividend from $0.05 to $0.06 per share.
The following table summarizes the key results for the first quarter of 2010 and compares them to the first quarter of 2009.

Quarterly Comparisons ($C millions, except per share and percentage amounts)
Metric | Q1, 2010 | Q1, 2009 | Change
Revenue | $49.9 | $37.9 | 31.6%
Net income from continuing operations | 3.7 | 1.3 | 175.1%
Earnings per share from continuing operations | 0.20 | 0.07 | 175.2%
Standard product gross margin | 42.3% | 35.5% | 6.8pp
Order backlog at March 31, 2010 | 75.0 | 93.5 | (19.8%)
Cash provided by (used in) operating activities | 6.2 | (7.7) | 181.2%

“In the first quarter of 2010 and continuing into the second quarter, we have seen a remarkable recovery take place in our Digital Imaging business,” commented Brian Doody, CEO of DALSA Corporation. “In each of our geographic regions, improving economic conditions are having a positive effect on demand for our products. This is particularly true in the Asia/Pacific region where Q1 shipments were three times higher than this period last year. This helped drive record revenue, increased margins, and healthy profitability in the division and improved financial results overall. As we look out to the second quarter and into the second half of the year, we are particularly encouraged by the strength of the Digital Imaging backlog. Not only has the backlog increased significantly since the end of 2009, but it has also moved to a more traditional (and favourable) distribution in which the majority of orders are for delivery in the short term. This combination of factors is a strong indicator of continued strength in the Digital Imaging business.”
“As we anticipated, the recovery in our Semiconductor business has been slower to materialize than in the Digital Imaging business. However, we expect to see an improvement in financial results beginning in the second half of 2010. This will be largely driven by a return to growth mode in our MEMS business. Since the end of December, our MEMS backlog has increased notably, which should translate into increasing MEMS revenue beginning in the second quarter. We are also anticipating a return of demand from our professional photography customers for image sensor chips later in the year as economic conditions continue to improve and demand for our customers’ products increase. At the same time, we are seeing steady improvements in gross margin, which we expect will be further enhanced once we close our 100mm line in Bromont, a project that is on-track for completion in the second quarter. The closure of the 100mm line will allow us to provide more cost efficient processing on our 150mm line, and provide room for the 200mm MEMS expansion, which will help satisfy the demand we are seeing for MEMS wafer processing”
In the first quarter of 2010, Digital Imaging reported record revenue of $33.1 million, up over 70% from the first quarter of last year and up over 25% from the fourth quarter of 2009. The sharp increase was driven by very strong product demand in the Asia/Pacific region, particularly in end markets such as flat panel display inspection and machine vision/industrial. For the first time, sales in the Asia/Pacific region accounted for more than half of the revenue in our Digital Imaging business. Net income in the division was strong at $4.0 million, representing 12.1% of revenue. Gross margin was 50.2%, up 3.1 percentage points from the first quarter last year. The Digital Imaging business ended the quarter with a strong backlog of $34.2 million, up $5.1 million from the end of December.
In the Semiconductor Business, revenue was $16.8 million, which was within our expectations. As anticipated, we saw a temporary decrease in shipments to a particular MEMS customer as its end customer worked through excess inventory in the latter part of the fourth quarter of 2009 and into the first quarter of 2010. We expect MEMS revenue to rebound beginning in the second quarter as orders from this customer return and as we ramp up production for new customers throughout 2010. The division posted a net loss of $0.4 million, up from a loss of $0.5 million in the same quarter last year. The loss in the quarter is due to sharp changes in Euro-related foreign exchange. Gross margin increased 2.6 percentage points to 25.4% in the first quarter due to improved product mix, better yields, and improved coverage of fixed costs at our semiconductor wafer fabrication facility. The backlog in the Semiconductor business was $40.7 million at the end of the first quarter, down $9.7 million from the end of December. The decline is due to a combination of the negative impact of foreign exchange on the value of our Euro-denominated backlog and the continued shipments against large long term orders that were booked in late 2008 and early 2009 in the Professional Imaging part of the Semiconductor business. As these orders are fulfilled, we expect to book new long term orders.
The Company’s cash position at the end of the first quarter was $12.1 million, up $3.6 million from the end of December 2009. Cash provided by operating activities was $6.2 million, compared to cash used in operating activities of $7.7 million in the same quarter last year. The improvement is due to higher profitability in the quarter.

Dividend
The Company’s Board of Directors has declared a quarterly dividend of $0.06 per common share to all shareholders of record on May 14, 2010. The dividend is payable on May 28, 2010. The Company has designated the full amount of these dividends as "eligible dividends" for Canadian income tax purposes.
Commenting on the 20% increase to the quarterly dividend, Mr. Doody said, “We are pleased to increase the dividend this quarter to $0.06 per share. By doing so, we are confirming our confidence in the Company’s operational performance and long term growth opportunities. At the same time, we are looking out for the best interests of all stakeholders in the Company.”
For further detail, please refer to the first quarter 2010 Financial Statements, accompanying notes, and Management’s Discussion and Analysis on the DALSA website. The address is http://www.dalsa.com/corp/investor/financials.aspx

Investor Conference Call Information
A conference call to discuss the results will be held today at 5:00pm EDT. The conference call, followed by the question and answer period, will be broadcast live and open to anyone interested in listening at http://www.gowebcasting.com/1660 . The phone numbers for those who wish to participate in the question and answer period are as follows:
Live Conference Access Information: Local Access: 416-340-8530 | Toll-Free Access: 888-340-9642
Instant Replay Access information: Local Access: 416-695-5800 | Toll-Free Access: 800-408-3053
Passcode: 6108331 | Expiry Date: May 12, 2010

About DALSA Corporation
DALSA is an international leader in high performance digital imaging and semiconductors with approximately 1000 employees world-wide. Established in 1980, the company designs, develops, manufactures, and markets digital imaging products and solutions, in addition to providing semiconductor products and services. DALSA's core competencies are in specialized integrated circuit and electronics technology, software, and highly engineered semiconductor wafer processing. Products and services include image sensor components (CCD and CMOS); electronic digital cameras; vision processors; image processing software; and semiconductor wafer foundry services for use in MEMS, high-voltage semiconductors, image sensors and mixed-signal CMOS chips. DALSA is listed on the Toronto Stock Exchange under the symbol “DSA” and has its corporate offices in Waterloo, Ontario, Canada.

For more information, please contact: Patrick Myles, Vice President, Corporate Communications
Tel: (519) 886-6001 Ext. 2177 | E-mail: patrick.myles@dalsa.com

[UrbanWaterloo]

DALSA Introduces High Resolution Smart Camera for Single Point Machine Vision Inspection
Posted 4/29/2010 - http://www.dalsa.com/corp/news/news.aspx?itemID=234

BILLERICA, Mass. – DALSA Corporation [TSX: DSA], a global leader in machine vision technology, today announced the availability of a high resolution model of its BOA vision system, a highly integrated smart camera that comprises all of the elements of an industrial machine vision system. The new BOA M1280 offers superior image quality at a resolution of 1280 x 960 and operates at up to 24 frames per second.
“High resolution sensors provide greater measurement accuracy and are able to distinguish very small features that, if missed, could render a product defective,” says Steve Geraghty, director of DALSA Industrial Products. “High resolution imagery, combined with the processing capabilities of the BOA smart camera, offers manufacturers of all industries a very capable inspection solution at a very affordable price.”
DALSA’s BOA is an all-in-one machine vision solution that is smarter, easier to use, and more flexible than previous generations of smart cameras. It is the first smart camera in its class to incorporate multiple processing engines. This enables algorithm optimization via DSP, application management via CPU, and sensor management via FPGA. It is also the first smart camera that offers truly embedded application software, which is easily set-up through a standard web browser. There is no software to install, and therefore no version control problems. BOA delivers greater flexibility for its users via a rugged, easy-to-mount enclosure, built-in factory communications, and a low deployment cost.
The monochrome version of the new high-resolution BOA vision system, Model M1280, is available immediately. A complementary color version will be available later in the year. For a downloadable image of the BOA vision system, please visit our online media kit.

About DALSA Machine Vision Products and Services
For more than 25 years DALSA has led the design, manufacture and deployment of digital imaging components for the machine vision OEM market, and now also offers end-user machine vision solutions for factory floor deployment. DALSA image sensors, cameras, smart cameras, frame grabbers, software, and Vision Appliances are used in thousands of automated optical inspection (AOI) systems around the world and across multiple industries including semiconductor, solar cell, flat panel display, electronics, automotive, medical, packaging and general manufacturing.

[UrbanWaterloo]

DALSA powers Intergraph’s new aerial photogrammetry camera with 140 megapixel image sensor
Posted 4/29/2010 - http://www.dalsa.com/corp/news/news.aspx?itemID=235


DALSA's 140 megapixel CCD measures 88 x 82 mm and powers Intergraph's new Z/I Imaging DMC II 140 camera to deliver aerial photogrammetry with large-scale ground resolution finer than 3 cm

Waterloo, Ontario - DALSA Corporation (TSX: DSA) is proud to announce that it is powering a new generation of Intergraph’s Z/I Imaging Digital Mapping Camera, the DMC II 140, with a custom 140 megapixel image sensor. This new sensor has been designed by DALSA exclusively for Intergraph and is not available to other aerial camera vendors.
The latest DMC II 140 model uses five customized image sensors per system: four 42 megapixel (6096H x 6846V) and one 140 megapixel (12240H x 11418V), collecting 308 megapixels with one exposure. The DMC II 140 is the first and only aerial mapping camera on the market using a single monolithic large format lens cone. Part of Intergraph’s comprehensive digital aerial photogrammetry solutions, the DMC II 140 camera can deliver large-scale ground resolution finer than 3 cm with full 12-bit dynamic range.
DALSA’s very large image format (88 x 82 mm), hermetically sealed sensors are optimized for photogrammetric performance. A customized packaging and special CCD cover glass ensure the highest geometric accuracy under every environmental condition. With high sensitivity to capture detail in shadows as well as vertical anti-blooming to contain bright highlights, these custom devices also provide wide angular response and high dynamic range for the best possible image quality. New, fast CCD readout technology provides an extreme high frame rate. Their large area and precise geometry allows Intergraph to implement fully electronic forward motion compensation (FMC) for blur-free imaging even with large-scale, long-exposure imaging from fixed-wing aircraft flying at low altitudes, even in adverse lighting conditions. The electronic FMC used within the DMC II 140 is capable of compensating for much higher velocity/height (V/H) ratios than mechanical systems, thus greatly extending the operating envelope of the DMC II 140.
“Our new DMC II 140 cameras deliver industry-leading performance,” said Jack Ickes, vice president of photogrammetry at Intergraph. “The imaging quality, innovative features and large size of DALSA’s image sensors are key components of this success.”
The DMC II 140 enables direct production of a wide range of mapping and image analysis products, including orthophotos, digital terrain models (DTMs) and vector maps for virtually any mapping application, including agriculture, cadastral mapping, cartography, forestry, land use/land cover mapping, environmental studies, natural hazard assessment, flood risk management, transportation engineering, urban planning, civil engineering, oil and gas exploration and geology.
“These are some of the largest, highest resolution CCDs we have every produced,” said Edwin Roks, Executive Vice-President and General Manager of DALSA Professional Imaging. “We are proud to deliver this world-leading technology to Intergraph for its high-performance photogrammetry systems.”


New Z/I Imaging DMC II 140 | DMC II 140 lens cone

For more information on Intergraph’s photogrammetry solutions, visit http://www.intergraph.com/photo/
For more information on DALSA’s image sensor technology, visit the DALSA Image Sensor Solutions website.

About Intergraph
Intergraph is the leading global provider of engineering and geospatial software that enables customers to visualize complex data. Businesses and governments in more than 60 countries rely on Intergraph’s industry-specific software to organize vast amounts of data into understandable visual representations and actionable intelligence. Intergraph’s software and services empower customers to build and operate more efficient plants and ships, create intelligent maps and protect critical infrastructure and millions of people around the world. Intergraph operates through two divisions: Process, Power & Marine (PP&M) and Security, Government & Infrastructure (SG&I). Intergraph PP&M provides enterprise engineering software for the design, construction and operation of plants, ships and offshore facilities. Intergraph SG&I provides geospatially-powered solutions to the defense and intelligence, public safety and security, government, transportation, photogrammetry, utilities and communications industries. For more information, visit www.intergraph.com.

[UrbanWaterloo]

The stock was up a whopping 28% yesterday based on those impressive earnings.


Source: Globeinvestor.com

[RangersFan]

$3 Million Order Highlights Continued Strong Digital Imaging Sales for DALSA
Posted 9/13/2010
http://www.dalsa.com/corp/news/news.aspx?itemID=254

Waterloo, Ontario - DALSA Corporation (TSX: DSA), an international leader in high performance digital imaging and semiconductors, is pleased to announce that it has recently received a new order valued at over CAD $3 million for inspection equipment to be used in a new Asia-Pacific flat panel display factory. The order includes DALSA’s flagship high performance line scan cameras and frame grabbers, with the delivery of the majority of these multiple hundreds of units scheduled by first half of 2011.

DALSA’s high performance inspection products inspect almost all the world’s flat panel displays, from small mobile devices to large television screens. The speed, resolution, and power that our cameras and processing boards provide are vital to quality control systems that improve the yield and lower the cost of LCD and plasma screens. With 400 million older CRT televisions still in use in China and ripe for upgrade to flat panels, television manufacturers are building factories in order to be close to this market and reduce costs.

“This latest order underlines our continued strength in digital imaging sales in 2010,” commented Brian Doody, CEO of DALSA Corporation. “Activity in the flat panel display capital equipment market has been very brisk this year, but I am pleased to report that we are seeing strong sales across a wide range of markets, including life science imaging and general machine vision. Some of this activity has been driven by pent up demand following last year’s slump, but even as our customers settle back into more stable purchase levels, our digital imaging outlook for the remainder of the year is very positive.”

Doody went on to say that “I am also pleased to provide an update relating to the supply chain challenges faced earlier in the year. Those challenges, caused by the rapid upswing in our imaging business this year, are now substantially behind us. Hard work by the people in DALSA’s materials management groups and an easing in some component shortages have allowed our manufacturing operations team to keep up with the strong demand we continue to see.”

[RangersFan]

DALSA to Expand R&D Investment in Waterloo for Growth and Diversification
Ontario Government Funding Will Help Accelerate Creation of New Jobs
Waterloo, ON | October 14, 2010 | http://www.marketwire.com/press-rele...SA-1335436.htm

DALSA Corporation (TSX: DSA), an international leader in high performance digital imaging and semiconductors, is pleased to announce that it plans to invest $160 million in new research and development initiatives over the next five years, supported by a grant of up to $24.3 million from the Ontario government.

The new technology created by these investments will fuel DALSA's growth through diversification even as the company builds on core strengths in digital imaging and advanced semiconductor manufacturing. Areas of particular focus include imaging in non-visible bands, such as X-ray and infrared. These new technologies will help DALSA expand into growing markets such as medical, defense and security imaging as well as new areas of industrial imaging.

"This initiative is about our growth and our future," said Brian Doody, DALSA's CEO. "As one of the top 60 R&D spenders in Canada, we are accustomed to making long-term investments in technology, but this program represents new areas of focus for us. We know that by extending and combining elements of the imaging and MEMS technology in which we already excel, we can develop completely new products to give us access to a number of large, attractive markets adjacent to those we already serve. The investment by the Province will help get us there, and along the way we plan to create over 100 new high-tech jobs here in Waterloo over the next five years. We appreciate the commitment the provincial government continues to make towards technology leadership and prosperity in Ontario."

DALSA is proud of its 30 year history, and this investment is proof of its commitment to innovation, growth, and community involvement in the Waterloo region.

[UrbanWaterloo]

Teledyne Technologies to Acquire DALSA Corporation
December 22, 2010 | DALSA Corporation | Link

THOUSAND OAKS, Calif. and WATERLOO, Ontario – Teledyne Technologies Incorporated (NYSE: TDY) (“Teledyne”) and DALSA Corporation (TSX: DSA) (“DALSA”) jointly announced today that they have entered into a definitive agreement that provides for the acquisition of DALSA Corporation by a wholly-owned subsidiary of Teledyne. Pursuant to the transaction, Teledyne will acquire all of the outstanding common shares of DALSA for CAD $18.25 per share payable in cash. The aggregate value for the transaction is approximately CAD $341 million, taking into account DALSA’s stock options and net cash as of September 30, 2010.

Headquartered in Waterloo, Ontario, DALSA is an international leader in high performance digital imaging and microelectromechanical systems (MEMS) with approximately 1,000 employees worldwide. Established in 1980, DALSA designs, develops, manufactures and markets digital imaging products and solutions, in addition to manufacturing custom MEMS products. DALSA’s imaging products and services include high-resolution, high-performance CCD and CMOS imaging sensors, electronic digital cameras and image processing software for use in industrial machine vision, advanced medical imaging and high resolution aerial and satellite imagery. For the twelve months ended September 30, 2010, DALSA had sales of approximately CAD $201 million.

“Teledyne and DALSA are each acknowledged leaders in digital imaging technology but our product lines and customer bases are almost entirely complementary. For example, DALSA produces among the world’s most advanced visible light imaging sensors and cameras for commercial applications, while Teledyne produces extreme resolution infrared sensors and subsystems primarily for government applications,” said Dr. Robert Mehrabian, Chairman, President and Chief Executive Officer of Teledyne. “The combined strengths of Teledyne’s and DALSA’s leading imaging technologies will allow us to develop new infrared and visible light products that serve our respective markets and customers. Furthermore, DALSA’s custom MEMS capabilities will be augmented by having access to Teledyne’s extensive MEMS research activities and advanced process technologies.

“With the acquisition of DALSA, Teledyne is making a substantial commitment to Canada. We are especially attracted to strong support for research and development and advancement of technology provided by both the Canadian Federal and Provincial Governments of Ontario and Quebec. Finally, following the acquisition of DALSA, and the previously announced divestiture of Teledyne Continental Motors, Teledyne will be transformed into a pure-play electronics, instrumentation and engineering focused company.”

“I view this transaction as a natural evolution for DALSA and a positive development for all DALSA stakeholders including shareholders, employees, executives, local communities, customers and vendors,” commented Dr. Savvas Chamberlain, Chairman of the Board and Founder of DALSA. “The decision to be a part of a larger organization recognizes that in order for DALSA to become a billion dollar company, we need to team up with an industry leader with complementary technologies. Finally, as the founder of the company, I am pleased to see DALSA’s name live on, in its new incarnation as Teledyne DALSA.”

“Being part of the Teledyne team will provide many opportunities for accelerated growth for DALSA,” said Brian Doody, Chief Executive Officer of DALSA. “I am looking forward to working with my existing management and executive team, along with the Teledyne team, as we move forward together in the next stage of the company’s development. As envisioned in the agreement with Teledyne, our principal operations will continue to function in their existing locations. Moreover, Teledyne expects to continue to invest in our technology and business.”

Additional Information About the Transaction

The purchase price payable by Teledyne of CAD $18.25 per common share represents a premium of 27.7 percent over the twenty-day volume weighted average trading price of CAD $14.29 for DALSA common shares on the Toronto Stock Exchange for the period ending December 21, 2010. Holders of approximately 6.4 million DALSA common shares, representing approximately 34.7 percent of DALSA’s outstanding common shares, have entered into support agreements with Teledyne pursuant to which they have agreed to support and vote in favor of the transaction.

The transaction will be carried out by way of a statutory plan of arrangement under the Business Corporations Act (Ontario). The completion of the transaction is subject to, among other things, the approval of shareholders of DALSA representing at least two-thirds of the common shares of DALSA represented at a special meeting of shareholders of DALSA to be called to consider the transaction and Court approval. In addition, the transaction is subject to a number of additional closing conditions, including receipt of required regulatory approvals, as well as other customary closing conditions.

The transaction has been reviewed by a Special Committee of the Board of Directors of DALSA and has been unanimously approved by the Board of Directors of DALSA following the unanimous recommendation of the Special Committee. The Board of Directors of DALSA unanimously recommends that the shareholders of DALSA vote in favor of the transaction. Canaccord Genuity Corp acted as financial advisor to DALSA, and the Special Committee and the Board of Directors have received an opinion from Canaccord Genuity that the consideration offered under the transaction is fair, from a financial point of view, to DALSA’s shareholders.

The definitive agreement contains a termination fee in the amount of approximately CAD $10.2 million, which is payable by DALSA to Teledyne in certain circumstances if the transaction is not completed. The definitive agreement provides that DALSA will call and hold a special meeting of the DALSA shareholders for the purposes of considering the transaction. If all necessary approvals are obtained and the conditions contained in the definitive agreement are satisfied, DALSA and Teledyne expect that the transaction will close in February 2011.

DALSA anticipates declaring a quarterly dividend, consistent with previous practices, prior to the closing date.

Full details of the arrangement and certain other matters will be included in the management information circular of DALSA (the “Information Circular”) which will be filed with the regulatory authorities and mailed to DALSA shareholders in accordance with applicable securities laws. Shareholders may obtain a copy of the definitive agreement, Information Circular of DALSA, and other meeting materials when they become available at www.sedar.com.

This press release is for informational purposes only. It does not constitute an offer to purchase shares of DALSA Corporation or a solicitation or recommendation statement under the rules and regulations of the United States Securities and Exchange Commission.

About Teledyne Technologies

Teledyne Technologies is a leading provider of sophisticated electronic subsystems, instrumentation and communication products, engineered systems, aerospace engines, and energy and power generation systems. Teledyne Technologies’ operations are primarily located in the United States, the United Kingdom and Mexico. For more information, visit Teledyne Technologies’ website at www.teledyne.com.

About DALSA Corporation

DALSA Corporation is an international leader in high performance digital imaging and semiconductors with approximately 1,000 employees worldwide, headquartered in Waterloo, Ontario, Canada. Established in 1980, the company designs, develops, manufactures and markets digital imaging products and solutions, in addition to providing MEMS products and services. For more information, visit DALSA’s website at www.dalsa.com.

[UrbanWaterloo]

I hate seeing Waterloo Region lose head offices.

[Spokes]

Sad news that a Waterloo company got bought. Hopefully Teledyne keeps to their word and keeps things around here the way they are, or grows them for that matter.

[UrbanWaterloo]

DALSA Reports Fourth Quarter 2010 Financial Results
Waterloo, Ontario | January 27, 2011 | Link | PDF

DALSA Corporation, an international leader in high performance digital imaging and semiconductors, today reported revenue from continuing operations of $54.7 million for the quarter ended December 31, 2010, and net income from continuing operations of $5.3 million or $0.29 per share, diluted. For the full year 2010, the Company achieved revenue of $212.3 million and net income from continuing operations of $19.2 million or $1.04 per share, diluted. The following two tables summarize the key results for the fourth quarter of 2010 and for the full year 2010 and compare them to the fourth quarter of 2009 and the full year 2009, respectively.

Quarterly Comparisons ($C millions, except per share and percentage amounts)	Q4, 2010	Q4, 2009	Change
Revenue	$      54.7	$     43.4	26.0%
Net income (loss) from continuing operations	5.3	(1.0)	630%
Earnings per share from continuing operations, diluted	0.29	0.01	2800%
Standard product gross margin percentage	39.1%	30.7%	8.4pp
Order backlog at December 31, 2010	79.7	79.5	0.3%
Cash flow from operations	3.2	0.6	430%
Year to Date Comparisons ($C millions, except per share and percentage amounts)	2010	2009	Change
Revenue	$    212.3	$    162.5	30.6%
Net income from continuing operations	19.2	0.5	3659%
Earnings per share from continuing operations, diluted	1.04	0.03	3366%
Standard product gross margin percentage	41.3%	32.7%	8.6pp
Cash flow from operations	26.8	(1.9)	1510%

“2010 was a strong year for DALSA,” commented Brian Doody, CEO of DALSA Corporation. “In our Digital Imaging business, we saw a significant return of demand for our products as well as new demand for products targeting the high volume industrial machine vision market segment. In our Semiconductor business, despite a decline in revenue year over year, we saw progressively increasing demand for MEMS as the year progressed and we achieved important technical and business development milestones in CMOS x-ray detectors for medical and dental.”

In the Digital Imaging business in the fourth quarter of 2010, we posted $37.2 million in revenue and net income of $6.8 million, compared to revenue of $26.4 million and net income of $1.2 million in the fourth quarter last year. Digital Imaging net income in the quarter included a $2.5 million, after tax gain from the sale of land in Waterloo. Backlog for Digital Imaging at the end of the fourth quarter was $38.6 million, up from $37.9 million at the end of the third quarter of 2010.

In the Semiconductor Business, we reported revenue of $17.5 million and net loss of $1.5 million in the fourth quarter of 2010, compared to revenue of $17.0 million and net loss of $2.2 million in the fourth quarter last year. MEMS revenue increased to a record $9.7 million in the fourth quarter, up from $6.4 million in the same quarter last year. The loss for the quarter in the Semiconductor business was due largely to foreign exchange and reduced wafer starts caused by downtime on a specific piece of wafer processing equipment, which has since been repaired. The Semiconductor backlog decreased marginally from $41.3 million in the third quarter of 2010 to $41.1 million in the fourth quarter of 2010. The MEMS backlog increased to a record level at the end of the year.

Cash provided by operating activities was $3.2 million, compared to cash provided by operating activities of $0.6 million in the same quarter last year. The increase was driven directly by higher sales in the Digital Imaging business. The Company’s cash position at the end of the fourth quarter was $17.4 million, up from $17.2 million at the end of the third quarter of 2010.

Dividend
The Company’s Board of Directors has declared a quarterly dividend of $0.07 per common share to all shareholders of record on February 8, 2011. The dividend is payable on February 16, 2011. The Company has designated the full amount of these dividends as "eligible dividends" for Canadian income tax purposes.
For further detail, please refer to the fourth quarter 2010 Financial Statements, accompanying notes, and Management’s Discussion and Analysis on the DALSA website. The address is http://www.dalsa.com/corp/investor/financials.aspx .

Teledyne Transaction Update
On December 22, 2010, the Company and Teledyne Technologies Incorporated (NYSE: TDY) (“Teledyne”) jointly announced that they had entered into a definitive arrangement agreement providing for the acquisition of the Company by a wholly-owned subsidiary of Teledyne. Pursuant to the transaction, Teledyne will acquire all of the outstanding common shares of DALSA for $18.25 per share payable in cash, representing a premium of 27.7 percent over the twenty-day volume weighted average trading price of $14.29 for DALSA common shares on the Toronto Stock Exchange for the period ended December 21, 2010. Holders of approximately 6.4 million DALSA common shares, representing approximately 34.7 percent of DALSA’s outstanding common shares, have entered into support agreements with Teledyne pursuant to which they have agreed to support and vote in favour of the transaction.
The transaction will be carried out by way of a statutory plan of arrangement under the Business Corporations Act (Ontario). The completion of the transaction is subject to, among other things, the approval of shareholders of DALSA representing at least two-thirds of the common shares of DALSA represented at a special meeting of shareholders of DALSA to be called to consider the transaction and Court approval. The Meeting will take place on February 10, 2011 at 9:00 a.m. at 605 McMurray Road, Waterloo, Ontario. In addition, the transaction is subject to a number of additional closing conditions, including receipt of required regulatory approvals, as well as other customary closing conditions. On January 18, 2011, the Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (as amended) (“HSR”) to Teledyne and the Company in connection with the transaction. With the termination of the HSR waiting period, the HSR-related condition to closing under the arrangement agreement has been satisfied.
The Board of Directors of DALSA has unanimously recommended that the shareholders of the Company vote in favour of the transaction. Furthermore, on January 17th, 2011, ISS Proxy Advisory Services (formerly Riskmetrics) a leading provider of proxy research, advice and voting recommendations to many financial institutions, published a report recommending that their subscribers vote "FOR" the special resolution approving the plan of arrangement. Full details of the arrangement and certain other matters are included in the management information circular of DALSA dated January 5, 2011 (the “Information Circular”) that has been filed with the regulatory authorities and mailed to DALSA shareholders in accordance with applicable securities laws. Shareholders may also obtain a copy of the definitive agreement, Information Circular of DALSA, and other meeting materials at www.sedar.com.

[RangersFan]

A very sad story, it just goes to show that no matter how much people believe humans have evolved, at our very core we are still primitive with only cares for ourselves. It's great to see Mr. Chamberlain, trying to protect his baby, and explain what was going on behind the scenes of this deal. I really hope they do remain here, and still contribute to the healthy growth of Waterloo Region.

Sale of Dalsa thwarts “barbarians at the gate”
Feburary 11, 2011 | Rose Simone | The Record | LINK

WATERLOO — The “barbarians at the gate” were on the verge of demolishing Dalsa Corp. before a deal to sell the business to a U.S. company was negotiated, the company’s founder, Savvas Chamberlain, said Thursday in a tearful farewell speech to employees.

Chamberlain gave the emotional farewell after shareholders overwhelmingly approved a deal to sell the digital imaging and semiconductor business to California-based Teledyne Technologies.

As the sale becomes official, Chamberlain leaves the company he founded 30 years ago as a University of Waterloo startup. He grew it into a company with annual revenues of more than $200 million that today employs 1,000 people, including 350 in Waterloo and 400 at a semiconductor foundry in Bromont, Que.

Chamberlain, who negotiated and supported the sale, said Teledyne is “the best possible home” for Dalsa because it will go on operating as Teledyne-Dalsa in Canada.

[ViewFromThe42]

I have twice had co-op terms with DALSA, and they were indeed one of the better employers I have had. It was a frightening morning for many when they called everyone in to hear the explanation of the deal, but they gave employees confidence that the company would not disintegrate. It is rather incredible that he was able to give up his child of 30 years for the greater good, but inspirational too.

[IEFBR14]

There were three activist shareholders at Dalsa that included Crescendo Partners of New York, plus two other “closet activist” shareholders, Bissett of Calgary and Howson Tattersall of Toronto. Together they owned 35 per cent of Dalsa versus Chamberlain’s 22.5 per cent.

I own a mutual fund from one of those activist shareholders. I just checked and I don't own the specific fund that owns Dalsa. But still, I'd hate to have contributed, however inadvertently, to the sale of Dalsa. OTOH the fund manager's mandate is to maximize the economic value of his holdings to his clients. Fund managers, in responding to their clients' pressure, tend to think in much shorter terms than the managers of the companies they invest in. So there seems to be inherent conflicts of interest and priorities in situations like this one. There is no black and white here, only shades of grey.

[ViewFromThe42]

'The stock market is for suckers'
January 24, 2011 | Jason Kirby | Maclean's | LINK

The stock market has become dangerously disconnected from its primary function of uniting growing businesses with large numbers of long-term investors. [...] Markets have come to be dominated by myopic short-term thinking. The vast bulk of trades now involve no humans at all, but rather sophisticated computer programs that swap stocks at lightning speed; many believe so-called high-frequency trading was one of the causes of the flash crash last year that exposed how fragile the whole game has become.
[...]
“The idea of the stock market was to help businesses raise capital, and to provide people, individuals, with a chance to invest their savings and participate in that growth and have enough money to retire,” says Peter Cohan, president of Peter S. Cohan and Associates, a venture capital and management consulting firm in Marlborough, Mass. “But in the last decade the whole thing seems to have fallen apart.” Where the market once helped investors and companies, now it’s failing both.
[...]
In 2004, at the age of 92, the late Sir John Templeton, a pioneer in the world of mutual funds, issued a stark warning to investors. “The stock market is broken,” he said in an interview. He went on to predict the housing bubble would spark the sort of terrible market crash we witnessed four years later. But Templeton saw a bigger problem than just the bubble then emerging. Stock markets are now dangerously short-sighted. “Mass media, especially TV today, is so short-term that few in its audience grasp the lasting damage and corrective impact which will continue to linger from the greatest financial crash in world history,” he said. In the wake of that very crash, short-term thinking is as much a problem as ever before.

The stats behind investors’ amputated attention spans are astonishing, and reveal the damage caused to the wider economy. According to the New York Stock Exchange, in the 1960s the holding period for stocks was eight years. By 1990 it had fallen to two years and today the average stock is held for just nine months. As investors have shortened their time horizons, companies have been focused on each next quarter’s financial results at the expense of the next decade, say experts. Last spring, the U.S. Senate banking committee held hearings to examine the plague of short-term thinking in capital markets. Some astonishing revelations emerged. In a survey of 400 chief financial officers, 80 per cent said they’d cut research and development spending to goose short-term performance. To make matters worse, when companies do beat expectations, executives are lavished with huge paycheques and millions of stock options that dilute existing shareholders even further.

One reason investor time horizons have shrunk so dramatically is that hedge funds have been taking massive gambles using borrowed money, says Cohan. “One of the biggest sources of volatility is hedge funds betting on very short-term movements,” he says. “That whole dynamic is not really conducive to long-term investing, or the long-term management of companies.”

The same can be said for much of what goes on in the stock market these days. At precisely 2:45 on May 6, 2010, U.S. indices plunged nine per cent, temporarily wiping out US$1 trillion of market value, before recovering several minutes later. For many regular investors, it was their first painful introduction to the volatile world of high-frequency trading. HFT firms earn billions betting on stocks as they move up and down by fractions of a penny. A typical high-frequency trader owns a stock for just nine seconds. The problem is, should markets drop abruptly, the complex computer algorithms used by HFT firms can make matters worse.

It really makes me think hard about how I want to invest.