Financial

posted on 30 July 2008 08:03

Hot on the heels of agámi Systems closing down, storage software supplier Ciprico has entered Chapter 11.

It supplied go-faster media stream and NAS (network-attached storage) products based on its software RAIDCore technology. In March it cut 30 percent of its staff - 25 people - and said strategic options were being looked at. In May it said it would file its SEC Form 10-Q late because a March headcount reduction had impacted the finance and accounting team preparing the filing.

Ciprico was transitioning from a hardware to a software technology focus for its RAIDCore technology and hardware OEMS were evaluating the product. This transition has not saved the company.

Steve Merrifield, Ciprico's president and CEO, who joined in 2006, said in May that the company had experienced low sales volume and cash locked up in illiquid mortgage security investments. At that time he said there had been expressions of interest from several parties about strategic transactions with the company.

However, Ciprico stated in its recent bankruptcy filing that no buyers were interested in purchasing all of the company or part of it. The firm has around $8 million of debt and reported revenues of $8.6 million in its fiscal 2007 period, compared to $11.9 million in its fy06 period. It has not recorded a profit since 1999.

Let's wish it a successful passage through Chapter 11 where it will still be looking for buyers.

^{[Chris Mellor.]}