- Computer memory company 4DS Memory (4DS) is gearing up to spend another quarter locked out of its production facilities
- 4DS staff were kept out of offices in March when San Francisco coronavirus lockdown measures kicked in
- Though initially only expected to last three weeks, 4DS told shareholders today the restrictions will likely last through May
- As such, 4DS has frozen Director and senior management paychecks until the end of June
- The company had $2.7 million cash in the bank at the end of March to weather the COVID-19 storm
- Shares in 4DS are trading 4.88 per cent higher in midday trade, selling for 4.3 cents each
Computer memory specialist 4DS Memory (4DS) is settling in for another quarter indoors as San Francisco lockdown measures keep workers out of offices.
The company revealed in March some severe COVID-19 lockdown orders mean the company’s staff cannot access its Silicon Valley facilities.
As such, 4DS was already falling behind on its production timeline with development partner IMEC.
Today, 4DS told shareholders San Francisco health officers are extending the stay-at-home restrictions through May.
Initially, the restrictions were only expected to last three weeks. However, while San Francisco Bay Area health officers are revising the quarantine rules, 4DS said the restrictions are being kept largely in place.
With the company still unable to access its facilities in the area, some prudent cost-saving measures have been put in place: 4DS is freezing its Board, Executive, and senior management paychecks completely until the end of June. Already, remuneration has been frozen over all of April.
What’s the cash like?
With such a long period of inactivity imminent, investors are likely concerned about how much money 4DS has in the bank to survive the coronavirus disruption.
At the end of March, 4DS had roughly $2.7 million cash on hand. Over the quarter, the company spent $847,000 — meaning at this level of spending, 4DS has roughly three quarters’ worth of cash remaining.
Of course, with staff locked out of production facilities and managers locked out of paychecks, it’s likely spending will drop over the final quarter of the 2020 financial year.
4DS said $627,000 of overall quarter spending was on research and development. As long as staff are kept from working, this figure will likely come in much lower over the current quarter.
Still, the company is eager to get back to production. 4DS said it will advise of the easing of San Francisco restrictions and draw up a new production timetable as soon as it can.
Shares in 4DS are trading 4.88 per cent higher in midday trade, selling for 4.3 cents each at 1:39 pm AEST.