SAN JOSE, Calif.—Multichannel multipoint distribution service equipment provider Hybrid Networks Inc. has failed to find a buyer and consequently is ceasing operations at the end of April, the company announced.
The company said it expects revenue for the first quarter to not exceed $700,000, and it has no backlog for future periods. Effective March 29, Hybrid is cutting approximately 80 percent of its staff, which in February consisted of 41 employees.
After payment of employee compensation, termination and other expenses, the company will have cash and accounts receivables of less than $1 million. Hybrid’s remaining liabilities consist primarily of $5.5 million convertible notes that are secured by substantially all of the assets of the company and its obligations to its landlord.
Hybrid said it does not expect that any assets will be available for distribution to holders of its common or preferred stock after claims with its creditors have been settled.
