Calxeda, Pioneer in ARM Chips for Servers, Shuts Down
Calxeda officials said the company was too early to market, and that its products were not generating enough revenue to keep it afloat.Calxeda, one of the leaders in developing ARM-based chips for low-power servers, is shutting down after a hoped-for round of funding fell through. Officials with Calxeda, which had been working with such top-tier server OEMs as Hewlett-Packard and Dell in bringing systems-on-a-chip (SoCs) based on the ARM architecture to servers, had thought they had financing lined up that would keep the company open, according to Karl Freund, vice president of marketing. However, the financing didn't come through and there was no time to pull together another deal, making it impossible for the 130-employee company to meet payroll and other financial obligations, and Calxeda's board decided to close down, Freund told eWEEK. What happens from here is unclear, he said. Calxeda officials will meet with creditors to try to find the best way for the company to resolve its debts, and it could mean selling the assets to another party that would continue the businesses in a much smaller fashion, possibly as a chip maker for fabrics, said Freund, who came to Calxeda after executive positions at HP and IBM. The company's future will come into better focus within the next three to six weeks, he said.
In the meantime, most of the 130 employees will be gone, though there will be a skeleton crew kept on to help service customers, he said. In addition, the company's two products will continue to be available and will be supported by whatever entity comes out of the restructuring, according to officials. Most of the employees were based in Austin, Texas, though there were some in Sunnyvale, Calif., and in China.