Compudigm goes bust and no future as going concern

After a series of multimillion-dollar losses, former software star Compudigm International called in the receivers last week.

Receiver John Fisk of PricewaterhouseCoopers said it was most unlikely that the Wellington company could be sold as a going concern.

Its closure has affected 20 staff in New Zealand, nine in the United States, one in Australia and one in Britain, mostof whom have now lost their jobs.

Mr Fisk said the company, which had been headquartered in Las Vegas since 2000, had run out of cash.

Compudigm's last available accounts showed a net loss of $2.6 million in 2005 and negative equity of more than $2.9 million.

At the time, the company's co-founder and shareholder Andrew Cardno said he expected the company to be on the verge of financial success.

Mr Cardno resigned as a director in July last year, according to Companies Office records. He was not available for comment last week.

Compudigm made net losses of $2.4 million in 2004, $4.8 million in 2003 and $4 million in 2002.

It developed and sold business intelligence software to help retailers and other businesses monitor their operational performance.

Its most successful application, Seepower, was sold to casinos around the world, allowing them to observe gamblers' behaviours and then optimise the use and positioning of their gaming tables and pokie machines.

The gambling software was sold to listed US pinball and slot machine company, Bally Technologies, in November last year.

Mr Fisk said one of his key tasks was to collect the balance of the purchase price from Bally Technologies.

The receivers were able to get an advance from a secured creditor to enable them to prepare the remaining retail software the company's main remaining asset for sale.

- © Fairfax NZ News