Memory Corp Changes Direction

Computergram International, June 4, 1999

Memory Corp Plc is gambling that internet-enabled 'digital appliances' are going to be as ubiquitous as some analysts claim and is refocusing on providing storage for the new breed of smaller devices. The company says that the first step in its new direction was the launch of its Flash-based MP3-GO internet audio system this March. The UK-based company also plans to change its name to reflect its new direction but has not yet decided what to call itself.

The company plans to raise $8.13m, through the placing of 427,959 Global Depository Receipts, to fund its shift in emphasis and pursue a policy of acquisition. It has announced the first content provider for the MP3-GO system, Regenesis, and hopes to have the Soulmate MP3 player in the shops by Christmas. Memory is teaming up with an unnamed consumer electronics company to produce the MP3 system. Although the company will not name its new partner, the smart money is on Panasonic, Memory is already working with Panasonic UK producing Flash memory cards. The company has also inked a deal with Advanced Micro Devices Inc, the pair will work on developing AMD's UltraNAND Flash and Flash controllers.

Memory has seen the worst of the chip industry, since it started trading in the early nineties. It introduced a method for re-using faulty DRAM chips just when the memory market slumped. The firm then tried to convert to itself a pure intellectual property house but still not find its niche.