Wednesday, April 5, 2000 - 3:49 pm CT
Aureal Inc. Files Chapter 11 Reorganization Case
Aureal Inc. today filed a petition for relief under chapter 11
insolvency in California in an effort to facilitate a reorganization
of its financial affairs. Aureal announced on March 24 the resignation
of all of its executive officers, including its president and CEO, its
chief technical officer, its chief financial officer, and its chief
operating officer and general counsel, along with all senior staff
members of Aureal. The Board of Aureal said in a press statement that
it is searching to replace or turnaround management, and is
considering all necessary actions to either sell the company or its
assets, or wind down the company.
Aureal announced its financial results for the fourth quarter of 1999
last month, reporting considerable losses. Revenues for the quarter
were $8.5 million, down from $11.2 million in the third quarter and
$10.8 million in the same period in 1998. Revenues for the full year
totaled $40.3 million, a 59 percent increase over $25.3 million in
1998. Fourth quarter operations generated a net loss of $9.5 million
compared to a loss of $3.5 million in the fourth quarter of 1998. The
year-to-date loss was $26.9 million, compared to a loss of $18.5
million for 1998. Legal expenses attributable to the patent litigation
exceeded $6.4 million in 1999, an increase of over $6 million from the
prior year.
Aureal is a provider of audio "solutions" for the computer, Internet,
and professional audio arenas. The company designs, builds and
distributes audio semiconductor, audio card and software solutions for
personal computers through the OEM and direct-to-customer channels.
Aureal's award-winning product line includes A3D positional audio
technology, Vortex audio processors, Vortex-based sound cards, and A3D
Pro sound design software. For more information on Aureal and its
products, visit their websites at www.aureal.com and www.a3d.com.
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