Original Source Press Release:
Silicon Film suspends operations!|
(Monday, September 17, 2001 - 17:08 EDT)
Bankruptcy looms for company behind the long-awaited (but never released) digital film cartridges...
A press release from Irvine Sensors Corp., majority owner of Silicon Film Technologies Inc., has announced that the latter company has ceased operations. Silicon Film, formerly known as Imagek, first announced plans for a 'digital film cartridge' which would allow film cameras to be used to capture digital images in early 1998. Eventually, working (e)film units were demonstrated, and the company even announced that it was nearing market and had opened doors on pre-orders - but too soon, it seems.
FCC certification tests were failed early this summer, and whilst the company finally passed these tests last week, (e)film is still failing more stringent European tests. With no money coming in, and work on developing the cartridges to pass certification burning up what remaining money Silicon Film had, the final result was inevitable. The money has run out, and Irvine Sensors has decided that in light of the current market and uncertainties as to when product could be certified and reach market, it won't be giving Silicon Film any further funding.
Unless another party provides further funds to keep Silicon Film going (an unlikely prospect, given the fact that after 3 1/2 years the company has yet to ship any product), it seems likely that the company will be declared bankrupt and liquidated. Along with the company, the (e)film concept will likely disappear - a once promising product which fell victim to delays and increasingly low-cost, powerful digicams that removed the need for film cameras to be extended into the digital arena.
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|Silicon Film Suspends Operations|
COSTA MESA, Calif., Sept. 15 /PRNewswire/ -- Irvine Sensors Corporation (Nasdaq: IRSN - news; Boston Stock Exchange: ISC) announced that Silicon Film Technologies, Inc., an independent and consolidated subsidiary, has suspended operations. The Silicon Film Board has retained special counsel in contemplation of liquidation through bankruptcy proceedings, if immediate financing alternatives are not secured.
Irvine Sensors, a fifty-one percent (51%) owner of Silicon Film, stated that it is also Silicon Film's largest creditor. Robert G. Richards, Irvine Sensors' President and Chief Executive Officer, said ``The failure of certification tests in the summer delayed Silicon Film's anticipated revenues, but development expenses continued. They worked hard on the certification issues, and a little over a week ago re-tested in compliance with the FCC's emission standards, but are still falling short with respect to stricter European standards. We believe at least some of those stricter standards must be met for a successful product launch. This has prolonged the schedule uncertainty. We have loaned Silicon Film substantial funds to support their product development because of our belief in the fundamental appeal of the Electronic Film System(TM) concept. However, we have reluctantly concluded that further loans in light of present market circumstances and remaining schedule uncertainty would not be in the best interests of Irvine Sensors' stockholders. We will consider any reasonable workout or alternative financing proposals that might emerge, but we have retained our own special counsel to vigorously pursue our position as their largest secured creditor should the contemplated liquidation ensue.''
Irvine Sensors Corporation, headquartered in Costa Mesa, California, is primarily engaged in the development of high density electronics, MicroElectroMechanical sensors (MEMS) and readout circuits, miniature cameras and image capture systems, electro-optical and optical switches, image processing devices and software, electronic image stabilization, wireless infrared communications products, and low-power analog and mixed-signal integrated circuits for diverse systems applications. It primarily seeks to commercialize its technologies through independently financed and managed subsidiaries.
Except for historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are dependent on risks and uncertainties including such factors, among others, as the difficulties of technology transfer, the technological risk in new products and the impact of competition. Irvine Sensors undertakes no obligation to publicly release the results of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Further information on Irvine Sensors' status and the matters discussed herein are contained in publicly filed disclosures available through the SEC's EDGAR database (www.sec.gov) or Irvine Sensors' Stockholder Relations department.