Puredepth Inc. (fka PDEP)

[buxmaker]

More news about PDEP-

By Jeff Bennett Delphi Automotive PLC is rolling the dice on a New Zealand 3-D graphics company's ability to help enhance the gauges drivers use in their cars and pickup trucks. Delphi said Wednesday it paid $15 million to acquire PureDepth Inc., a company making graphics used in electronic slot machines and other devices. An auto parts giant once owned by General Motors Co., Delphi has been pivoting from a supplier of traditional car components to a creator of electronic systems and other technology needed to meet safety or emissions requirements. Delphi disclosed the acquisition alongside earnings. First-quarter profit more than doubled, and results outpaced analyst expectations. The PureDepth deal is the latest in a string of acquisitions or dispositions aimed at reshaping Delphi's business. Last year, the company dropped two divisions, invested in two companies and acquired three others -- including cable and connector maker HellermannTyton Group PLC. The moves reflect a wider trend among auto suppliers looking to provide auto makers with gadgets that make cars and trucks more tech savvy. Car interiors are becoming more digital and require significantly more sophisticated electronic controls, for instance, and car companies are racing to make electric vehicles and self-driving cars more feasible. Auto suppliers provide many of the parts needed to make these systems work. PureDepth approached Delphi two years ago to show what it could do with instrument clusters -- the panel on a dashboard that indicates speed or fuel levels, and also increasingly provides navigation or in-vehicle entertainment information. The meeting led to an initial partnership and an instrument cluster concept Delphi debuted at the Consumer Electronics Show in January. "The three-dimensional graphics we had at CES received more attention from our customers than any other technology that we showed," Chief Executive Kevin Clark said during an analyst conference call Wednesday. "You are going to see more displays. You are going to see more glass in cars. We're convinced of that." For the quarter, Delphi earned $425 million compared with $209 million for the same period a year earlier. On an adjusted basis, Delphi reported $1.36 a share, exceeding analyst estimates of $1.34. Revenue rose almost 8% to $4.1 billion. Delphi said much of the sales boost came from the business generated by HellermannTyton. The deal for HellermannTyton closed in December. Overall, the company booked $7 billion worth of new business during the first quarter which included winning an electronics contract for Fiat Chrysler Automobiles NV's Ram pickup truck. For the second quarter, the company expects operating income on an adjusted basis to be between $555 million and $585 million. Revenue is expected to be between $4.13 billion and $4.23 billion. Delphi said automotive production disruptions in the wake of the April earthquakes in Japan reduced revenue forecasts by $75 million. The company continues to monitor the situation but auto makers at this point see no long term impact and expect to recover the production they lost by the end of the year. Shares dropped almost 4% to $70.26 in trading Wednesday. Write to Jeff Bennett at [e-mail]