A day after the Beaverton tech business Digimarc Co. announced that it would lay off 90 workers by the end of March in order to reduce expenses, shares of the company plummeted on Thursday.
Investment analysts were informed by Digimarc that it has engaged Goldman Sachs to examine strategic alternatives, a term used by businesses to sell themselves. Digimarc stated that it will take into account every possible option, including the potential for the company to go private.
Digimarc’s market worth was around $330 million after its shares fell 43% to $15.39 on Wednesday.
Digimarc, one of Oregon’s oldest but least well-known tech firms, was founded in 1995. Over the years, it has gone through several market cycles and now sells digital watermarks for identifying physical goods or verifying digital information.
Digimarc made a $39 million loss last year despite reporting $22.4 million in sales. After a dozen years of consistent financial losses, the company declared on Wednesday that it could no longer continue.
Forty percent of the company’s personnel is affected by the 90 layoffs that were announced on Wednesday.
Riley McCormack, the CEO, stated during a conference call that it is never easy to say goodbye to coworkers. Nonetheless, we are well aware of our obligation to all parties involved, including our surviving teammates, to consistently make sure we are conducting business in the most sustainable and healthful way possible.
–Mike Rogoway writes on the business and technology in Oregon. You can reach him at 503-294-7699 or [email protected].
