News: Optibase pulls the plug?

While blissfully on holidays, I've returned to discover the biggest news of 2005. I'm sure you all already know, but just in case here's the low down.

On January 7th 2005, Optibase newly appointed CEO, Uzi Breier, announced plans to restructure Media 100.

Optibase will continue to sell and support the existing suite of Media 100 products, certain positions at Media 100 will be eliminated, and Research and Development initiatives with regard to Media 100 will be considerably reduced in order to improve the financial results derived from this business unit.

Commenting on the restructuring, Mr. Breier said, "Since joining Optibase, I have studied the markets in which we operate and have carefully evaluated our competitive position, as well as the growth opportunities existing in each of these markets. It is my belief, that at this time, the digital non-linear editing market does not present Optibase with the most substantial growth opportunity and is not fully synergistic with the Company`s core activities. As a result, I have recommended to Optibase`s Board of Directors, and they have agreed, that it is in the best interest of the company and its shareholders to remove certain portions of our Media 100 activities and focus our resources on initiatives that may better position Optibase for growth in both the short and long-term."

So what does this all mean for 844/X? At this stage it probably to early to say, however the following release from Media 100 doesn't paint a bright future.

Media 100 will become more focused on the business of Media 100 HD and the company's existing installed base. These changes line up with a stronger than anticipated interest in Media 100's HD product line, and position Media 100 to immediately take advantage of the rapidly accelerating transition to HD in the marketplace.

Steve Bayes has also commented on the 844/X user forum on Creative Cow with this to say.

In light of the decision to refocus Optibase, Inc. around the growing IPTV market, the Media 100 business unit has been restructured. With the reduction in resources and staffing, Media 100 will become more focused on the core business of Media 100 HD and our installed base. These changes, while challenging, line up with a stronger than anticipated interest in the HD product line and position Media 100 to immediately take advantage of the rapidly accelerating transition to HD in the marketplace. We still feel this is a strong product with a loyal customer base. We will shortly have upcoming announcements about HDV support, HD software codec's and details on the 10.1 release for Media 100 HD.

And I would just like to assure folks that I am still here at Media 100 and managing both the transition and continuing development.

As we evaluate 844/X development, engineering is currently preparing to release the upcoming 3.0.4 version, which will include support for the HP xw8200 platform. Additional details about 844/X development will be announced at NAB 2005.

Media 100 has maintained staffing in all departments including support, engineering, operations, sales, marketing, finance and customer service. You can expect the same quality of support and service, albeit with some longer support queues during peak hours. There are fewer people here, but they are still the same dedicated, experienced folks you have counted on for sales and support over the years.

The Media 100 business unit remains committed to our customers, partners and the mission of creating exceptional editing and compositing solutions for the postproduction community. We sincerely appreciate the good will and faith our user community has shown. Thanks for your understanding during this transitional time and please watch www.media100.com for additional news and information.

Sincerely, Steve Bayes, Director of Product Marketing, Media 100/Optibase

More information can also be found on Bob Turner's The Cut, Vol. 4, No. 3. makes for a good read, however slightly depressing.

Post Updated 1/27/05