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VizionWare, Maker of High-end HDMI Products, is Out of Business
The six-year old developer of long-range amplified HDMI cables and connectors had raised $21 million in venture funding.
VizionWare’s hallmark cables have active HDMI processing technology built into the connectors.
VizionWare, the Austin, Texas-based developer of amplified HDMI cables and connectors, has filed for chapter 7 bankruptcy protection.
Founded in 2002, VizionWare had raised about $21 million from several venture funds.
According to VentureBeat.com, Vizionware "started to unravel earlier this year when it failed to raise even $4 million in third round funding this June. It laid off some of its staff, which was already pretty slim, and began hunting desperately for a buyer. Its product revenue so far this year was a grim $318,000, which was only a slight dip from 2007."
The company lists 560,377 in assets and $788,140 in liabilities.
Among the assets are dozens of patents pending, which VizionWare values at $250,000. According to the bankruptcy filing (pdf), only one patent has been issued: Reduced EMI device and method thereof (No. 11/003,986).
Among the creditors are four employees that are collectively owed $236,000 in deferred salary. It appears from the patent filing that VizionWare does not owe former VP of sales and industry veteran Ben Jamison, who left VizionWare in August, joining Savant Systems.
VizionWare was a promising fixture in the custom industry, best known for its high-performance HDMI connectors. In its Hi-Wirez products, active HDMI technologies are implemented in silicon and embedded in the cables. "The result is superior video quality in a lighter and flexible configuration," according to VizionWare's statement as a finalist in the CEA's 2007 Mark of Excellence Awards.
Industry insiders speculate that the company simply spent too much money, especially in the early days of HDMI, when the confusing 1.3 spec was just starting to gel.
VizionWare faced several competitors in the high-performance HDMI cable category, especially companies that were better established and had a more diversified portfolio of products.
VizionWare's core business was based on amplified HDMI cables ranging from $199 for 1 meter to $1,299 for 20 meters. (Eventually the company diversified with some lower-cost HDMI solutions and a video switcher.)
Can the industry really support a high-spending manufacturer with that kind of focus? A small, niche manufacturer, maybe, but probably not one with $20 million in VC funding.
VizionWare was a good customer of ours, and an enthusiastic supporter of the custom industry, and we're sorry to see them go.
With its Chapter 7 filing, the company will liquidate its assets rather than reorganize for a comeback. Among some of the specialty HDMI testing equipment likely to go on the block: TDS 6804B Storage Oscope ($100,000 est. market value), Rhodes & Swartz spectrum analyzer ($40,000), and Tek DTG 5274 ($30,000).
While the VizionWare Web site has been shut down, the company's online store is still open at http://store.vizionware.com/
Founded in 2002, VizionWare had raised about $21 million from several venture funds.
According to VentureBeat.com, Vizionware "started to unravel earlier this year when it failed to raise even $4 million in third round funding this June. It laid off some of its staff, which was already pretty slim, and began hunting desperately for a buyer. Its product revenue so far this year was a grim $318,000, which was only a slight dip from 2007."
The company lists 560,377 in assets and $788,140 in liabilities.
Among the assets are dozens of patents pending, which VizionWare values at $250,000. According to the bankruptcy filing (pdf), only one patent has been issued: Reduced EMI device and method thereof (No. 11/003,986).
Among the creditors are four employees that are collectively owed $236,000 in deferred salary. It appears from the patent filing that VizionWare does not owe former VP of sales and industry veteran Ben Jamison, who left VizionWare in August, joining Savant Systems.
VizionWare was a promising fixture in the custom industry, best known for its high-performance HDMI connectors. In its Hi-Wirez products, active HDMI technologies are implemented in silicon and embedded in the cables. "The result is superior video quality in a lighter and flexible configuration," according to VizionWare's statement as a finalist in the CEA's 2007 Mark of Excellence Awards.
Industry insiders speculate that the company simply spent too much money, especially in the early days of HDMI, when the confusing 1.3 spec was just starting to gel.
VizionWare faced several competitors in the high-performance HDMI cable category, especially companies that were better established and had a more diversified portfolio of products.
VizionWare's core business was based on amplified HDMI cables ranging from $199 for 1 meter to $1,299 for 20 meters. (Eventually the company diversified with some lower-cost HDMI solutions and a video switcher.)
Can the industry really support a high-spending manufacturer with that kind of focus? A small, niche manufacturer, maybe, but probably not one with $20 million in VC funding.
VizionWare was a good customer of ours, and an enthusiastic supporter of the custom industry, and we're sorry to see them go.
With its Chapter 7 filing, the company will liquidate its assets rather than reorganize for a comeback. Among some of the specialty HDMI testing equipment likely to go on the block: TDS 6804B Storage Oscope ($100,000 est. market value), Rhodes & Swartz spectrum analyzer ($40,000), and Tek DTG 5274 ($30,000).
While the VizionWare Web site has been shut down, the company's online store is still open at http://store.vizionware.com/
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About the Author
Julie Jacobson, Editor-at-large, CE Pro
As a co-founder of EH Publishing in 1994, Julie has edited and contributed to all of the company's publications at one time or another. An authority on home automation, networking, integration, digital convergence and the CE pro channel, Julie speaks often about these subjects at industry events. She graduated with a B.A. in Economics from the University of Michigan, and received an MBA from the University of Texas at Austin. Julie is a washed-up Ultimate Frisbee player.
5 Comments
And this is why the DPL Rating is so important.
http://www.dplrating.org
DPL tests any length that is submitted by a mfgr.(only submitted sku’s get a rating).
This system allows the dealer and consumer to accurately compare and evaluate all of the rated brands and models.
Unfortunately, Brent, DPL can’t tell you if a company has a viable business.
Ain’t that the truth.
I will thank you so much for the smart releases just about this good post! And you know, that the freelance writing jobs would use that stuff at the term papers.
Page 1 of 1 comment pages
This is a shame….....and another slap in the face for the Custom A/V Segment.
I’m sorry to say that VizionWare’s problem seems to go well beyond financial problem…..as I am most confident that they experienced TECHNICAL problems…..more-so. Having tried & tested their Hi Wirez and 1650 Series long length HDMI cables, all of which have either failed and/or died over extremely short periods of use.
We deployed several of their 15M-30M lengths, that were tasked to run 1080p (via Bluray), and that’s where they really started to choke. They start to produce problems after a very short period of use, problems such as (white)flicker, and minor sparkly array of white bits…..even when stepped down 1080i.
After countless hours of troubleshooting, equipment software/firmware updates, cable changes, routing changes, etc…....I have determined “Proof Positive” that the Vizionware product is and has been riddled with technical problems.
Again, it is a shame as this is such a critical link in the projector equation, more-so it’s a shame when a client/end-user has to experience a failure of this nature, especially at this price-point. I can clearly say that the SPEC’s provided and philosophy that VizionWare pitched had us sold.
I clearly recall reading several credible articles/reviews on the VizionWare HDMI product, of which was filled with positive spec’s and praise. Obviously VizionWare sent over an HDMI cable that was built, reviewed, and tested many times over prior to releasing to these reviewers, If only they had taken the same precautions prior to releasing the units that had be sent to us.
I have noticed since they have filed bankruptcy, they are none responsive to any calls/emails, and have chosen to liquidate any remaining product online. Anyone who would purchase one of these at this price point, would be crazy, even if they sold for $25. I personally have a $600 retail HDMI cable that is deader than a door knob….and is embedded within my walls & ceiling. Vizionware’s. The sad point point-is that there is a component cable sitting right next to it that clearly could have handle the job (well not fully), but you get the point.
With all the HDMI problems within the industry this is the last thing CE guys need, especially when a progressive CE company is trying to push the standards along.
I contacted HDMI.ORG regarding this subject and posed the question; how could this be possible? Aren’t there standards, that aid in consumer protection in place with any/all product sold “that carries the HDMI logo???” The response was yes….but…..there seems to be a discrepancy. The discrepancy being “AND LISTEN CLOSE” the standard length of cable that shall be tested is a 1-Meter (3.3foot) in length only!?!?!?!
Lastly:
This re-affirms one of my long standing facts that, I believe that it is unfortunate and a shame that CE guys, have to be the Ginny pigs of the industry…..as we are consumers to!!!