Visiontek says it's not going bust

THE INTERNET RUMOUR MILL is rife with whispers that AMD's AIB partner, Visiontek, is on the verge of filing for bankruptcy. But the company vehemently denies this, claiming the speculation has arisen due to what it calls "poor assumptions."

Visiontek, one of ATI's certified graphics card partners, apparently has struggled through the credit crunch as video card shipments sank. This has led some to say that if the firm doesn't get a significant cash bail-out from investors soon, it will have to fold very soon indeed.

But a statement from the company did its utmost to discredit the rumours, stating, "VisionTek continues to build its business and channel relationships in 2009." The statement went on to say, "new product launches are extending the brand's presence in the consumer market and positioning VisionTek as a leader in its product niches well into the next decade."

Michael Innes, COO of Visiontek told the INQ not to believe the rumours of imminent bankruptcy, noting that the firm's executive management and board of investors had "succeeded in enhancing VisionTek's financial footing with a leading international bank."

"We are moving forward on implementing our business model, exploring manufacturing opportunities and expanding our technology product line," he added.

We hope for Visiontek's sake that this is true, especially since the firm has just invested in a 100,000 square foot, state-of-the-art distribution center just outside Chicago.

We asked Innes why the rumours had sprung up in the first place, reminding him there was seldom smoke without fire. Innes responded by saying he believed "poor assumptions" were made, "surfacing from ripple effects in our supplier channel."

"Many of our CMs have changed and we are realigned with new CMs, stronger financing and different channels of business," he told us, adding that "these shifts in our business model may have led to a misperception of our current situation."

Mark Bilson, Visiontek's VP of sales, said the firm, which was AMD's leading retail partner back in 2008, is backed by "the strongest retail and e-commerce sites in North America," including Best Buy, Dell, Fry's Electronics, Future Shop, Micro Center, Newegg and Tiger. Bilson also reckoned his firm has "clear targets for global expansion."

However, one can't help but wonder whether the company will manage to reach these targets before it runs out of cash. µ