For Sale: MathStar

MathStar, Inc. (Nasdaq: MATH) will discontinue its field programmable object array (FPOA) chip development and its board-level systems development businesses. MathStar is preserving their assets while it considers strategic alternatives. The company has hired an investment banker to explore strategic alternatives. MathStar will incur aggregate pre-tax costs and charges of approximately $4.1 million consisting of the following: approximately $1.1 million in employee severance and benefit costs; approximately $1.4 million in asset write-off and accelerated depreciation of property, plant and equipment; approximately $1.1 million in accelerated payment of future rent and operating lease payments; and approximately $500,000 in other exit costs. As of March 31, 2008, MathStar had $3.0 million in cash and cash equivalents and $20.6 million in short-term marketable securities.

More info: MathStar