March 24, 2011
MARKHAM, ONTARIO: AZCAR
Technologies has gone out of business, according to a statement from the
company’s U.S. counselor, Patrick W. Carothers. The broadcast systems
integrator has “ceased business and [will] be operated under the control of a
chief liquidation officer,” the statement said. It’s not clear if AZCAR is in
the Canadian equivalent of Chapter 11 bankruptcy. The statement also indicated
that the directors had resigned, but did not provide details.
AZCAR’s directors include former NBC tech chief Charlie
Jablonski, Murray Desnoyer, David George and Robert Jenks. Company executives cannot
comment, and a call to Mr. Carothers was not returned by press time.
AZCAR, which traded on the TSX Venture Exchange for small cap stocks, had 15,566,350
common shares outstanding as of this morning. The stock hit 3.5 cents Canadian
today before trading ceased at 10:51 a.m. ET, leaving the company valued at
The most recent financial release available online is for the first quarter of
2010, when AZCAR posted revenues of $13.3 million and a net loss of nearly $3.9
million, or 25 cents a share, compared to a net loss of $1.2 million or 8 cents
a share in 1Q09. The increased loss was attributed to “the continuing deterioration
in market conditions worldwide,” plus severance and impairment charges. Google
Finance does have results for the third quarter of 2010, but no accompanying
source from the company to confirm revenues of just $5.85 million and a net
loss of $1.35 million.
lists compensation for AZCAR’s top executives as $355,400 for founder, chairman
and CEO, Stephen Pumple; $339,800 for president and chief operating officer Gavin
Schutz, and $235,600 for Bill Frazier, senior vice president of sales. (These are 2009 salaries figures according to an individual familiar with the company who said executives took a 50 percent cut in pay for 2010.)
The company was founded in 1974 and went public on the Alberta Stock Exchange in
1995. It moved to the Toronto Exchange, from which it was delisted last year
when its market cap fell below the required level. AZCAR subsequently resumed
trading on the TSX Venture Exchange.
AZCAR helped design digital infrastructures for
several large TV operations in the United States, including the Turner
Entertainment Network, Fox Networks, Univision TV stations and Sinclair
Broadcast Group. The company has not yet provided details about how ongoing
projects will be handled.
-- Deborah D. McAdams