A soft economy plus heavy research and development expenses forced telematics provider NEXIQ Technologies to file for Chapter 11 bankruptcy this week. NEXIQ said it will sell off its assets and those of its subsidiaries under Chapter 11 protection, rather than reorganize.
Sterling Heights, MI-based NEXIQ added that the Chapter 11 filings cover NEXIQ Technologies Inc. and its two operating subsidiaries, WPI Micro Processor Systems Inc. also of Sterling Heights, and Diversified Software Industries Inc. of Coralville, IA.
NEXIQ's bankruptcy filing comes after struggling with major financial losses. For the fourth quarter of 2001, the company lost $5.4 million on $3 million in revenue. For its full 2001 fiscal year, revenue dropped 3.7% to $12.9 million and net losses totaled $18.5 million.
NEXIQ said full fiscal year 2001 results were negatively impacted by increased research and product development costs as well as the costs associated with the acquisition of Diversified.