Silicon Arts Inc. Analysis of Dig-image and W-Comm projects
Silicon Arts Inc. (SAI) is a manufacture of digital imaging Integrated Circuits (IC) that are used in digital cameras, DVD players, computers, medical and scientific instrumentation. The major sales are in North America but the company has presence in Europe and South East Asia. SAI grew rapidly in the first years due to the semiconductor industry boom. As the industry began to slow down, SAI watched their revenues fall by 40%. SAI survived the decrease in revenues by cutting costs and freezing capital expenses. Wisely, SAI continued its research and development efforts and developed the IC 1032 – a specialized chip used in data embedded mobile phones (University of Phoenix, 2007).
Hal Eichner, SAI Chairman, has a two point agenda for the company; increase market share, and keep pace with......
Silicon Arts Inc. (SAI) is a manufacturer of circuits that are used in a number of different electronic equipment (University of Phoenix, Simulation, 2006). In their first years, they saw first a huge soar in the industry, but that was swiftly followed by a 40% downfall in subsequent years. SAI dealt with this by tightly controlling their expenses. Current markets trends indicate that the industry may be on the rise. Consequently, and with the help of their new CFO, the company now wants to develop some new capital investment projects. SAI’s current goals are to increase their market share and to keep pace with new technology (University of Phoenix Simulation, 2006).
Part 1
The first task on the agenda was to examine the probable future scenarios that could potentially accept the cash flows for SAI and their two potential projects, Dig-Image and W-Comm. Included in SAI’s plans are the need to make $5 ...