VisionTek rubbishes rumors, confirm secured funding in place
7/17/2009 by: Theo Valich
Several web sites ran a story that VisionTek, AMD's North American channel partner - is about to go bust. Now, there are several types of events that happen prior to launching such a story but we won't go and explore them now.
What matters is that according to the information we have at hand, the rumor about VisionTek going bust looks like a bad re-run from 2002 [the first rumor of VisionTek going bust]. We spoke with Michael Innes, COO of VisionTek and in a long conversation we learned a lot of details about the company.
According to Michael, it is not a secret that VisionTek, just like almost every graphics card vendor out there - was hit hard by the recession and slowing sales. The company looked around for funding since September of last year, when it was clear that there will be a lot of turmoil on the global markets. Consumer support was never in question, but the guys are not hiding that they knew they could do even better. Even though, this "better" is somewhat odd claim, since according to AMD's data, VisionTek was AMD's #1 channel partner in North America, above Sapphire and Diamond Multimedia [and others].
In 2009, that position is getting filled by XFX, who got very aggressive in both Europe and the North American continents - but VisionTek got back with a plan.
In the past eight weeks, VisionTek's new business plan got accepted by a major European bank and the company's future is secure [for now]. In a statement we received after the call, there was a following quote: "Executive management and the VisionTek Board of Investors succeeded in enhancing VisionTek’s financial footing with a leading international bank. We are moving forward on implementing our business model, exploring manufacturing opportunities and expanding our technology product line."
What makes the "VisionTek going bust" story more interesting is the fact that VisionTek just invested in a "100,000 square foot state-of-the-art distribution center centrally located in the US, outside Chicago." Read: adjacent to the second largest airport in the world.
Michael went on to say that the rumor about VisionTek probably originated from one of the dropped Chinese partners, since the unnamed manufacturer was hit hard and ultimately fold [here's a hint: who left the ATI AIB market recently?]. But VisionTek's troubles are behind them. The new investor joins in already existing Board of Investors [the company is backed by private and venture capital].
Long story now, VisionTek now has millions of dollars to expand their operation. A story about them going down under just doesn't make any sense… unless a certain party launched a "shilling campaign". If VisionTek was really about to go down, what sane bank would invest millions in them to "expand the operation" on European markets as well? For now, VisionTek goods are available in Best Buy, Dell, and Fry's, Newegg, Tiger and others. In late 2009 and early 2010, you can expect some European chains joining the list.
To conclude... nothing beats a slow news day like a saucy rumor about somebody going bust. Now, where have we heard that one?
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