It’s been a while since we wrote about Verari. You’ll recall that Verari Systems went out of business back in December and had to sell assets to pay creditors, laying off all their employees in the process. Then co-founder Dave Driggers managed to put together some financing and buy some of what was left to try and make another go of it as Verari Technologies. The company didn’t say much after it started getting systems back on line, but we assumed things were clicking along.
I have been hearing via Twitter and a few other outlets (and on this site; see the more recent comments on this article) that the company is not doing well, and even that a furlough might be in the offing. That was confirmed yesterday via an email from someone who attended a company-wide conference call on the 15th of April.
According to that source, the news on the call was grim. Sales are much lower than expected, and evidently they cannot find partners willing to license and sell Verari IP (this partner strategy was part of the early press release the company issued right after it re-started). Verari has lined up an outside manufacturer (Celestica), but they haven’t gotten any sizable orders from Verari and, according to my source, also haven’t put any direct sales staff in place to move Verari hardware as they had originally planned to do. Other sources within the company also say that Verari’s current sales staff does not include any of the top performers from the old Verari Systems, and that seems to be hurting them as well.
The furlough was also discussed on the call, and “many” current Verari employees are headed for a two week furlough which could become permanent if things don’t improve.
I’m sorry to hear that the company is still struggling, and sincerely hope they are able to turn it around. If you have additional insight into what’s going on, leave a comment or drop me an email.