QPC Resumes Limited Ops
SYLMAR, Calif., Oct. 20, 2008 -- QPC Lasers has resumed operations on a limited basis but may still file for bankruptcy if it is unsuccessful in restructuring its finances and securing new funding, the company said today in a regulatory filing.
QPC filed papers with the US Securities and Exchange Commission (SEC) today reporting that it has resumed manufacturing, engineering and sales operations on a limited basis; on Oct. 14 the company reported a suspension in operations pending receipt of new funding. Last week the company told the SEC that it has been unsuccessful in raising the funds necessary to continue operations and, effective Oct. 12, had suspended most of its operations and terminated a majority of its 50 or so employees.
"While management is continuing to explore certain options that might enable the company to survive and continue operations, unless significant funding is secured in the next few days, the company anticipates it will file for protection under Chapter 7 of the federal bankruptcy laws," the Oct. 14 filing stated.
The company reported today that it is currently engaged in discussions with customers and investors with regard to restructuring its finances and securing funding. If it is unsuccessful, QPC said it may file for protection under either Chapter 11 or Chapter 7 of the federal bankruptcy laws. According to its filings, as of July 31 the company's debt totaled $25.3 million.
QPC Lasers announced Sept. 5 that it was seeking to raise additional capital by offering between $2 million and $7.5 million in a proposed private placement of units of its stock and stock purchase warrants.
The company also reported today that Paul Rudy resigned as vice president of sales and marketing, effective Oct. 15. On Oct. 14 the company announced the resignation of Blima Tuller, vice president of finance and chief accounting officer, effective Oct. 13. QPC said Tuller would remain as an employee to assist with accounting and finance matters. Rudy and Tuller, along with CEO Jeffrey E. Ungar and CFO George Lintz, had agreed in July to salary reductions and to have their insurance premiums increased -- receiving additional shares of stock instead -- as part of the company's cost-cutting efforts.
QPC makes laser diodes through its subsidiary, Quintessence Photonics Corp. The company, founded in 2000, first targeted the fiber optic telecommunications market. After the fiber market downturn, the company turned its focus to materials processing, printing and medical applications, as well as the defense/homeland security laser market. QPC's sales for 2007 reached nearly $8 million.
Just last month QPC announced it had successfully completed its initial Department of Defense contract to develop and deliver high-power eye-safe surface-emitting diode pumps for directed energy weapons applications. The accomplishment is of key importance to the future of DoD high-energy laser applications, QPC said in a statement, because it enables the fabrication of such devices to be wafer-based and cost-effective.
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