DS2, one of two chipmakers who have announced plans for G.hn chips has entered the Spanish equivalent of chapter 11 bankruptcy procedure.
Clearly, DS2 is a good candidate to be purchased with a reported $20 million in sales in 2008. But with a rumoured $30M in debt, it will be a challenge to find the right buyer.
DS2 has previously promised G.hn chips for Q3 2010. Assuming DS2 did not spend IBM's loan of $2M on launching the chip, it is hard to imagine a bankruptcy judge approving this investment while DS2 is in chapter 11 bankruptcy procedure.
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No body really knows what they have spent the money of the IBM on. Ds2 is owing the workers 4 months wages, the workers only found out about the Chapter 11 bankruptcy procedure from the bulletin
ReplyDeleteIn May 2009, DS2 staff was put on half-time/half-pay. This was part of a process to be allowed to layoff staff in Spain.
ReplyDeleteDS2 employees found out ahead of the market, not by a bulletin.
ReplyDeleteDS2 employees are not owed 4 months back wages.
As to the IBM monies, this is a non-news issue.
The news is that DS2 filed for the Spanish version of Chapter 11 and plans on restructuring debt and exiting the process in 3-6 months. Our sales in 2010 are far ahead of 2008 and all major customers, including Telcos deploying us as an IPTV link, have recommitted to DS2 post-announcement of the restructuring.
As to someone acquiring us... that I cannot comment on, but I will say that the future for DS2 looks even better now after the announcement than before. There are many things to look forward to regarding DS2 over the rest of 2010, and not just the delivery of G.hn silicon.
For those not in the know, Mr. Egan is an senior executive of DS2. He speaks with a grain of truth (somebody wanting to pick-u the remains of DS2) and grains of salt (back wages).
ReplyDeleteAs Mr. Egan is a "consultant" and not a "real" DS2 Spanish employee, he is doing his job on speculation of being paid--not a bad plan considering the alternatives.
Mr. Egan's estimate of DS2 getting sorted out in 3-6 months is likely to be right-on. In that time it is either DS2 gets eaten or it goes BOOM. Given the tons of IP DS2 has BOOM is not likely. Surely some patent troll (PLC is ripe for a patent troll) will buy the DS2 remains.
Best of luck Mr. Egan--truly.
Ah, whoever you are, you have the facts all wrong, especially in regards to myself and DS2.
ReplyDeleteFirst, I am an employee of DS2 and have been for about a year and a half now. My pay is not on speculation nor is it months delayed. But, you are right in that I am not Spanish, the rest is bull.
Second, no partial truths from what I stated, your misinformation stating that there is a back wage problem at DS2 is unfounded. I ask you to show something to back up this claim. I know you will say you have it on good faith from some unnamed source. Yup. Sure.
The timeframe for being sorted out is less than I claim. If any of your readers know me they know I tend to be conservative in my claims. We will come out of the process stronger and ready to rapidly move ahead. The endgame in the powerline wars is right before us, we cannot wait to jump into it with G.hn.
By the way, if I had my vote in the matter, I would stay independent for the next 12 months or so as our value will soar once we begin delivering mass production quantities of G.hn silicon and systems are being installed. By this time next year our run rate will be established and we will do quite well. Thanks. And the endgame will have pretty much played out. And when G.hn triumphs, you may need a consulting job yourself, gimme a call.
The truth is that, for more than a year, DS2 has not regularly paid the salaries to their employees. Salaries are payed irregularly and partially. At least, full 4 monthly paysleeps have not been payed at the moment.
ReplyDeleteAlso, DS2 has another debt to its employees. The company promised a Deferred Bonus for all the employees staying at the company for 2 years (21% worth the salary of 2 years). This was promised nearly 5 years ago, but nothing of this money has been paid at the moment (most likely never).
Those employees have overworked (free long hours, weekends, etc) for more than 10 years.
To whom it may concern: if someone would like to be the leader on the market for powerline communications, DS2 is the technology. It really works. With the right marketing and sales strategy DS2 would be the champion. No doubts about it!
ReplyDeleteThis sounds like the story of the " King Who Had No Clothes "
ReplyDeleteWhen Europe and the rest of the world realise that PLT trechnology is fundamentally flawed...........in that it CANNOT function on unbalanced household mains wiring systemswithout radiating RF .......THUS,......Is NOT completely SECURE when anyone nearby can listen in......and with the right technology.....can HACK in !!!
THIS IS THE TRUTH !!!