Wednesday, September 24, 2008

NeoMagic Shuts Down

Santa Clara-based NeoMagic, a publicly traded maker of multimedia and graphics processors, has shut down. According to NeoMagic, the firm has ceased efforts to raise additional capital, and as a result is shutting down the firm. NeogMagic said that it has terminated employment for "substantially all" of its operations and engineering employees. NeoMagic said it is now making efforts to wind-down its operations. 52 employees were affected by the move. NeoMagic, which is listed on the Nasdaq as NMGC, also said that it has received a Nasdaq Staff deficiency letter because the firm no longer meets the minimum of $2.5M of shareholders' equity, $35.0M of market value, or $0.5M in net income from continuing operations. The warning is the first step in delisting the firm; the firm said it does not expect to maintain its listing on the market, and has request that trading in the firm's common stock be suspend immediately.