Digeo Had $5 Million In Sales For 2008: Arris Filing
Paul Allen-Backed Holding Company Filed for Bankruptcy Nov. 3
Todd Spangler -- Multichannel News, 12/4/2009 3:46:03 PM
Digeo, Paul Allen's DVR company, had $5.0 million in revenue and a net loss of $37.7 million for 2008, according to a regulatory filing Friday by Arris, which bought substantially all the assets of the company in October.
The Arris filing also provided Digeo's unaudited finances through June 30. Digeo listed $19.9 million in total assets and $145.7 million in total liabilities, the latter of which included $100 million in notes payable. Through June 30, Digeo had an accumulated deficit -- representing the company's aggregate losses since its inception -- of $554.0 million, according to the filing.
For the first six months of 2009, Digeo reported $3.2 million in revenue and a net loss of $14.8 million. R&D expenses were $5.3 million for the period, with a total operating loss of $12.0 million.
Arris announced in September it would acquire Digeo in a deal worth $20 million and the deal closed Oct. 1. With the acquisition, Arris gained about 75 employees located in Kirkland, Wash. Arris said the addition of the Digeo engineering team will increese research and development spending by approximately $3 million per quarter.
Subsequent to Arris's acquisition of Digeo, the remaining Allen-controlled entity -- called 9OM -- filed for chapter 11 bankruptcy protection Nov. 3. The holding company listed assets of less than $50,000 and debts of $10 million to $50 million, according to the bankruptcy filing.
Digeo, founded by Allen in 1999, originally aimed to distribute DVRs through cable operators but found limited success. In January 2008 the company laid off 73 employes, nearly half its workforce of 160, and canceled plans for two products to focus on the direct-to-consumer Moxi HD DVR.
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