September 24, 2008
NeoMagic to wind down operations
SAN JOSE, Calif. -- NeoMagic Corp. is the latest chip maker to go under.
NeoMagic (Santa Clara, Calif.) has been unable to raise additional capital and will wind down its operations. The chip maker has terminated its operational and engineering employees in all worldwide locations.
Beginning Sept. 19, the chip eliminated 52 positions. On Sept. 23, Brett Moyer, Carl Stork and David Tomasello, each independent directors of the company, have resigned.
At this time, the company is unable to determine the amounts of one-time termination benefits, contract termination costs and other associated costs and expected cash flows associated with its wind-down activities.
The company is taking action to maintain continuity of supply of its products to current customers.
NeoMagic had been struggling for some time. It was no surprise it is going out of business.
Others may go out of business for one reason or another. DRAM vendor Qimonda AG is on the ropes and may get sold to Micron Technology Inc.
MathStar Inc. appears to be winding down its operations. As it seeks a buyer, MathStar said it plans to discontinue its field programmable object array (FPOA) chip development and its board-level systems development businesses.
