Energy-efficient SiCortex runs out of juice
Unable to raise additional funds, the maker of energy-efficient high-end computers is looking to sell its assets and close down, according to a report.
SiCortex, a company that makes energy-efficient high-end servers, is shutting down and seeking to sell its assets, according to reports.
Maynard, Mass.-based SiCortex was unable to close a follow-on round of financing because its venture capital investors did not have money available, according to a report at high-performance computing site Inside HPC. SiCortex has raised $42 million from Chevron Technology Ventures, Flagship Ventures, JK&B Capital, Prism VentureWorks, and Polaris Venture Partners.
Intellectual property manager Gerbsman Partners is trying to sell the assets of SiCortex, according to a blog post from Gerbsman. A memorandum posted on Thursday from Gerbsman says that SiCortex has customers in the U.S. government and universities in Europe and the U.S.
SiCortex's revenue grew substantially in the last quarter, selling high-performance computing products focused on low-power consumption. But it was not profitable, which forced the company to lay off employees and retain only a small staff focused on an exit strategy, according to the Inside HPC report, citing an unnamed source.
Representatives from the company did not return calls and e-mails requesting comment on Thursday.
The company's demise underlines the difficult economic conditions where smaller companies are trying to preserve cash and find customers to remain solvent.