Knobias Clip Report (09-24-2008) NMGC
Submitted By Knobias ClipReport
NMGC: Wind-Down of Operations and Termination of Employees
By Fain Hughes, fhughes@knobias.com
NeoMagic Corporation (NMGC) announced a cessation of efforts to raise additional capital. As a result, NeoMagic is making efforts to wind-down its operations and has terminated employment for substantially all of its operational and engineering employees in all worldwide locations. Beginning September 19, 2008, management, acting based upon a plan approved by the Board of Directors, eliminated 52 positions in the Company. 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. The Company also intends to take actions to realize the value from its remaining assets for the benefit of creditors. The Company does not currently anticipate that any proceeds will be available for distribution to its shareholders following payment of its liabilities.
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