Powered Down: SiCortex to Sell Off Assets of Company

By Addison Snell

May 27, 2009

Following the sudden loss of venture capital funding, HPC system provider SiCortex shut down operations earlier today, according to a well-placed source within the company who wished not to be named. The majority of employees have been laid off, and the company will seek an immediate sale of its assets.

According to the source, the course of action was initiated when one of the five venture capital firms behind SiCortex pulled out because of a lack of available funds. The other four then followed suit.

The five firms that had funded SiCortex were Chevron Technology Ventures, Flagship Ventures, JK&B Capital, Polaris Venture Partners, and Prism VentureWorks. They had previously provided SiCortex with $42 million in funding, most recently in a Series B round in 2006. None of the five firms returned calls for comment.

These developments come at a time of rapid growth for SiCortex, despite the current economic conditions. The company announced record quarterly growth for Q1 2009, with the majority of its business coming from the relatively strong government sector.

According to Tabor Research, worldwide traditional HPC server revenue was $7.5 billion in 2008 and forecasted to fall to $7.0 billion for 2009, with a drop-off in academic endowment funding and lengthening sales cycles in commercial markets outweighing any gains in the government sector.

Since its inception in 2003, Massachusetts-based SiCortex has designed HPC systems with an emphasis on low power consumption. Its differentiated architecture helped turn SiCortex into a high-profile, second-tier HPC vendor. HPCwire named SiCortex an HPC Company to Watch in 2006 and recognized the company with its Editor’s Choice Award for Most Innovative HPC Cluster Solution in 2007.

Despite recent growth, SiCortex had not yet become operationally profitable, so the loss of funding left its management no choice but to lay off employees and stop operations immediately. The company is presently maintaining a skeleton crew dedicated to the support of existing customers and to finding an immediate exit strategy.

Failing a “highly improbable” replacement of the lost venture capital, “we are looking at an as-is asset sale,” said the source. SiCortex would potentially become the third HPC system provider sold in a span of one quarter. Rackable completed its acquisition and brand adoption of SGI earlier this month, and the sale of Sun Microsystems to Oracle is still pending closure.

The fate of SiCortex underscores the wide-ranging effects of a flagging economy, with venture capitalists also feeling the pinch. As more tech companies look for recession-resilient sectors within HPC, those that are venture-funded may find they are reliant on more than just their own growth.

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

SRC Spends $200M on University Research Centers

January 16, 2018

The Semiconductor Research Corporation, as part of its JUMP initiative, has awarded $200 million to fund six research centers whose areas of focus span cognitive computing, memory-centric computing, high-speed communicat Read more…

By John Russell

US Seeks to Automate Video Analysis

January 16, 2018

U.S. military and intelligence agencies continue to look for new ways to use artificial intelligence to sift through huge amounts of video imagery in hopes of freeing analysts to identify threats and otherwise put their Read more…

By George Leopold

URISC@SC17 and the #LongestLastMile

January 11, 2018

A multinational delegation recently attended the Understanding Risk in Shared CyberEcosystems workshop, or URISC@SC17, in Denver, Colorado. URISC participants and presenters from 11 countries, including eight African nations, 12 U.S. states, Canada, India and Nepal, also attended SC17, the annual international conference for high performance computing, networking, storage and analysis that drew nearly 13,000 attendees. Read more…

By Elizabeth Leake, STEM-Trek Nonprofit

HPE Extreme Performance Solutions

The Living Heart Project Wins Three Prestigious Awards for HPC Simulation

Imagine creating a treatment plan for a patient on the other side of the world, or testing a drug without ever putting subjects at risk. Read more…

When the Chips Are Down

January 11, 2018

In the last article, "The High Stakes Semiconductor Game that Drives HPC Diversity," I alluded to the challenges facing the semiconductor industry and how that may impact the evolution of HPC systems over the next few years. I thought I’d lift the covers a little and look at some of the commercial challenges that impact the component technology we use in HPC. Read more…

By Dairsie Latimer

When the Chips Are Down

January 11, 2018

In the last article, "The High Stakes Semiconductor Game that Drives HPC Diversity," I alluded to the challenges facing the semiconductor industry and how that may impact the evolution of HPC systems over the next few years. I thought I’d lift the covers a little and look at some of the commercial challenges that impact the component technology we use in HPC. Read more…

By Dairsie Latimer

How Meltdown and Spectre Patches Will Affect HPC Workloads

January 10, 2018

There have been claims that the fixes for the Meltdown and Spectre security vulnerabilities, named the KPTI (aka KAISER) patches, are going to affect applicatio Read more…

By Rosemary Francis

Momentum Builds for US Exascale

January 9, 2018

2018 looks to be a great year for the U.S. exascale program. The last several months of 2017 revealed a number of important developments that help put the U.S. Read more…

By Alex R. Larzelere

ANL’s Rick Stevens on CANDLE, ARM, Quantum, and More

January 8, 2018

Late last year HPCwire caught up with Rick Stevens, associate laboratory director for computing, environment and life Sciences at Argonne National Laboratory, f Read more…

By John Russell

Chip Flaws ‘Meltdown’ and ‘Spectre’ Loom Large

January 4, 2018

The HPC and wider tech community have been abuzz this week over the discovery of critical design flaws that impact virtually all contemporary microprocessors. T Read more…

By Tiffany Trader

The @hpcnotes Predictions for HPC in 2018

January 4, 2018

I’m not averse to making predictions about the world of High Performance Computing (and Supercomputing, Cloud, etc.) in person at conferences, meetings, causa Read more…

By Andrew Jones

Fast Forward: Five HPC Predictions for 2018

December 21, 2017

What’s on your list of high (and low) lights for 2017? Volta 100’s arrival on the heels of the P100? Appearance, albeit late in the year, of IBM’s Power9? Read more…

By John Russell

Independent Hyperion Research Will Chart its Own Course

December 19, 2017

Hyperion Research, formerly the HPC research and consulting practice within IDC, has become an independent company with Earl Joseph, the long-time leader of the Read more…

By John Russell

US Coalesces Plans for First Exascale Supercomputer: Aurora in 2021

September 27, 2017

At the Advanced Scientific Computing Advisory Committee (ASCAC) meeting, in Arlington, Va., yesterday (Sept. 26), it was revealed that the "Aurora" supercompute Read more…

By Tiffany Trader

Japan Unveils Quantum Neural Network

November 22, 2017

The U.S. and China are leading the race toward productive quantum computing, but it's early enough that ultimate leadership is still something of an open questi Read more…

By Tiffany Trader

AMD Showcases Growing Portfolio of EPYC and Radeon-based Systems at SC17

November 13, 2017

AMD’s charge back into HPC and the datacenter is on full display at SC17. Having launched the EPYC processor line in June along with its MI25 GPU the focus he Read more…

By John Russell

Nvidia Responds to Google TPU Benchmarking

April 10, 2017

Nvidia highlights strengths of its newest GPU silicon in response to Google's report on the performance and energy advantages of its custom tensor processor. Read more…

By Tiffany Trader

IBM Begins Power9 Rollout with Backing from DOE, Google

December 6, 2017

After over a year of buildup, IBM is unveiling its first Power9 system based on the same architecture as the Department of Energy CORAL supercomputers, Summit a Read more…

By Tiffany Trader

Fast Forward: Five HPC Predictions for 2018

December 21, 2017

What’s on your list of high (and low) lights for 2017? Volta 100’s arrival on the heels of the P100? Appearance, albeit late in the year, of IBM’s Power9? Read more…

By John Russell

GlobalFoundries Puts Wind in AMD’s Sails with 12nm FinFET

September 24, 2017

From its annual tech conference last week (Sept. 20), where GlobalFoundries welcomed more than 600 semiconductor professionals (reaching the Santa Clara venue Read more…

By Tiffany Trader

Chip Flaws ‘Meltdown’ and ‘Spectre’ Loom Large

January 4, 2018

The HPC and wider tech community have been abuzz this week over the discovery of critical design flaws that impact virtually all contemporary microprocessors. T Read more…

By Tiffany Trader

Leading Solution Providers

Perspective: What Really Happened at SC17?

November 22, 2017

SC is over. Now comes the myriad of follow-ups. Inboxes are filled with templated emails from vendors and other exhibitors hoping to win a place in the post-SC thinking of booth visitors. Attendees of tutorials, workshops and other technical sessions will be inundated with requests for feedback. Read more…

By Andrew Jones

Tensors Come of Age: Why the AI Revolution Will Help HPC

November 13, 2017

Thirty years ago, parallel computing was coming of age. A bitter battle began between stalwart vector computing supporters and advocates of various approaches to parallel computing. IBM skeptic Alan Karp, reacting to announcements of nCUBE’s 1024-microprocessor system and Thinking Machines’ 65,536-element array, made a public $100 wager that no one could get a parallel speedup of over 200 on real HPC workloads. Read more…

By John Gustafson & Lenore Mullin

Delays, Smoke, Records & Markets – A Candid Conversation with Cray CEO Peter Ungaro

October 5, 2017

Earlier this month, Tom Tabor, publisher of HPCwire and I had a very personal conversation with Cray CEO Peter Ungaro. Cray has been on something of a Cinderell Read more…

By Tiffany Trader & Tom Tabor

Flipping the Flops and Reading the Top500 Tea Leaves

November 13, 2017

The 50th edition of the Top500 list, the biannual publication of the world’s fastest supercomputers based on public Linpack benchmarking results, was released Read more…

By Tiffany Trader

GlobalFoundries, Ayar Labs Team Up to Commercialize Optical I/O

December 4, 2017

GlobalFoundries (GF) and Ayar Labs, a startup focused on using light, instead of electricity, to transfer data between chips, today announced they've entered in Read more…

By Tiffany Trader

HPC Chips – A Veritable Smorgasbord?

October 10, 2017

For the first time since AMD's ill-fated launch of Bulldozer the answer to the question, 'Which CPU will be in my next HPC system?' doesn't have to be 'Whichever variety of Intel Xeon E5 they are selling when we procure'. Read more…

By Dairsie Latimer

Nvidia, Partners Announce Several V100 Servers

September 27, 2017

Here come the Volta 100-based servers. Nvidia today announced an impressive line-up of servers from major partners – Dell EMC, Hewlett Packard Enterprise, IBM Read more…

By John Russell

Intel Delivers 17-Qubit Quantum Chip to European Research Partner

October 10, 2017

On Tuesday, Intel delivered a 17-qubit superconducting test chip to research partner QuTech, the quantum research institute of Delft University of Technology (TU Delft) in the Netherlands. The announcement marks a major milestone in the 10-year, $50-million collaborative relationship with TU Delft and TNO, the Dutch Organization for Applied Research, to accelerate advancements in quantum computing. Read more…

By Tiffany Trader

  • arrow
  • Click Here for More Headlines
  • arrow
Share This