Feeds

Aureal close to collapse – execs out on their ears

To sell or to wind down?

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Aureal has purged its entire executive management team and is considering "all necessary actions to either sell the Company or its assets or wind down the Company". The putsch for the digital audio company follows a horrible set of Q4 results, which saw the firm effectively run out of cash. It sees the departure of "President and CEO, Kip Kokinakis, its Chief Technical Officer, Scott Foster, its Chief Financial Officer, David Domeier, and its Chief Operating Officer and General Counsel, Brendan O'Flaherty, along with all senior staff members of Aureal". The board is seeking turnaround management. Word on the street was that Aureal has effectively been up for sale for several months, with Intel and Creative tipped as interested prospective buyers. Looks like any negotiations on that score has broken down. Aureal announced the departures, just one day after the company posted a very poor set of Q4 results (23 March). For the three months to 21 January sales were $8.5 million, down from $11.2 million in the third quarter and $10.8 million in the year-ago fourth quarter. Worse, losses ballooned to $9.5 million, compared to a loss of $3.5 million in the fourth quarter of 1998. The year-to-date loss for 1999 was $26.9 million, compared to a loss of $18.5 million for 1998. Kokinakis blamed the results on the "patent litigation with Creative and trial process distracted us. To fight and win a lawsuit of such magnitude was a major undertaking for a company our size, and it didn't come without significant costs. Both our people and financial resources were stretched, especially during the fourth quarter, and that impacted our efforts to further expand the reach of our products". Patent litigation expenses were $6.4 million in 1999, an increase of over $6 million from the prior year. "Unfortunately, even when you're right and you win in court, it can have a huge impact on your business," said David Domeier when he was still Senior VP Finance and CFO of Aureal. "We can't measure the impact of the trial process and attendant market disruption on our sales for the quarter or the year, but we know the customers were confused by what was going on. We lost sales and incurred substantial costs in preparing for and fighting the case in court." ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.