Going Once...

5:00 PM - What will it take to kill Storage Computer Corp. (OTC: SOS)?

Eighty minutes after an asset recovery service put out a release today saying Storage Computer shut down operations and would auction off its assets Sept. 22, a correction crossed the wires.

The Nashua, New Hampshire-based company is not shutting down, thank you very much. Its only closing its manufacturing unit while continuing as a software development and marketing company (see Storage Computer Sells Assets and Storage Computer Closes).

Storage Computer may be the first corpse to spring to life while its obituary was still being written. Even more amazing is that Storage Computer survived this long. The company lost money for nearly six straight years, got delisted by the American Stock Exchange (AMEX) last December, and quit filing earnings reports late last year because it ran out of money. Yet in April, Storage Computer put out a release saying it was pursuing new financing!

Although the Storage Computer web site says it’s a storage system provider supporting NAS, SAN, Fibre Channel, SCSI, and IP, its main business strategy in the past seemed to be filing patent lawsuits. It received $2.5 million to settle a suit against Seagate Technology Inc. (NYSE: STX) in 2001, but lost subsequent cases against Hitachi Ltd. (NYSE: HIT; Paris: PHA) and Veritas Software Corp. (Nasdaq: VRTS), and never recovered.