Feeds

InPhase holo-storage firm in deathmarch tug o' war

Investors tussle over fire-sale plans

High performance access to file storage

The two venture capital owners of failed holographic storage developer InPhase are at war. One wants to auction all the company's remaining assets, while the other thinks it can do a phoenix and rise from the ashes.

Bart Stuck, CEO of Signal Lake

Stuck on you: Signal

Lake MD Bart Stuck

won't give up on InPhase

The Longmont TImes reports that two VC firms, Acadia Woods Partners and Signal Lake, own the business. Acadia has 50.5 per cent and Signal Lake 49.5 per cent of a $10m loan made to InPhase in March after it had shut down the month before. Bart Stuck, the managing director and co-founder of Signal Lake, said at the time he thought InPhase could be revived. Signal Lake has been a long-term investor in the company.

Acadia said it loaned its share of the cash to InPhase on the understanding that other investors would come on board. They haven't. Now it has hired an auctioneer to sell off every single one of InPhase's assets, having gained legal approval to do so in September. Signal Lake says it is contractually prevented from doing that and has gone to the Boulder County District Court to try and stop the auction.

InPhase went through a tortuous product development process for its 300GB Tapestry holographic drive, with many stops and starts, layoffs and repeated delivery delays, finally giving up the ghost when it couldn't get the drive and its advanced optics to operate reliably.

The company has just 14 contractor employees and hired a new CEO in October. It is experiencing as tortuous a close-down and death process as it did in its development phase. This is largely due to Signal Lake's managing director Bart Stuck's amazing and tenacious faith in it and its technology.

Signal Lake has invested a largish proportion of the $95m cash InPhase has consumed since January 2001 and successful completion of its product development is the only way it will get any return on that. ®

High performance access to file storage

More from The Register

next story
Seagate brings out 6TB HDD, did not need NO STEENKIN' SHINGLES
Or helium filling either, according to reports
European Court of Justice rips up Data Retention Directive
Rules 'interfering' measure to be 'invalid'
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
Bored with trading oil and gold? Why not flog some CLOUD servers?
Chicago Mercantile Exchange plans cloud spot exchange
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.