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Semiconductors - Friday, September 26, 2008

Multimedia Chip Maker NeoMagic Goes Dark

Once a hot startup that was listed on Wall Street, Santa Clara's NeoMagic has shut down. The firm says its stopped its efforts to raise additional capital. Its final 52 employees will be let go. The firm no longer meets the Nasdaq minimum of $2.5M of shareholders' equity, $35.0M of market value, or $0.5M in net income from continuing operations.

NeoMagic shares peaked in 1997 at $125. It made processors for multimedia applications in handheld devices. By 1998, NeoMagic saw great success in the laptop graphics chip market. In 2004, it began selling off pieces of its intellectual property portfolio in an effort to raise cash to fuel its primary products, which are chips that enable mobile television on handheld devices.

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