In "The King Has No Clothes On" Azido would be Fred's $4 million invisible coat.
When purchased he excitedly told shareholders this amazing coat would soon be producing revenue. The problem was 14 years after Kent Gilson and Alfred DiMora introduced Azido (then Viva) with blaring trumpets, revenues were still invisible. So were customers. Same with user groups.
Two years later the only visible user group was some biology (not computer science) undergrads attending a one week Azido seminar last July. Fred suggested they might somehow discover what Kent and DAIO couldn’t... how to make Azido useful enough to generate users, customers and revenue.
Fred claimed "industry luminaries" gushed over Azido during due diligence. Two years later luminaries and gushes remain invisible. The exception is a few comments by Dr. Athanas, a professor who first evaluated Azido in 1999. At that time DiMora and Gilson suggested their StarBridge Systems would eventually dwarf MicroSoft and Gilson's other invention, a supercomputer called HAL, would run circles around IBM's fastest machine.
14 years later MicroSoft and IBM still have customers, user groups and revenues. Azido and HAL? Invisible.
The invisible coat severely damaged Fred's credibility. Same with DAIO Directors.
It also severely damaged DAIO shareholders. The cost was not just a $4 million price tag and subsequent shareholder cash dumped into it. All the executive team, staff and Director focus put into acquiring, integrating and then "what the heck do we do with it now?" trouble shooting of Azido is time that wasn't spent on DAIO’s existing flash programming initiatives. Baseball rule #1: “Never take your eye off the ball.”
Anthony Ambrose and new Directors can continue wearing Fred’s invisible coat. Their alternative is to be honest with the staff and investors. We made a mistake. We will sell the program to an experienced FPGA player and keep use rights. Going forward DAIO will be 100% focused on flash programming equipment solutions.
The one silver lining for investors staring at $1.75 a share is Azido is loaded with slapstick comedy. Videos on DiMora’s website showing him proudly assembling the first $25 million HAL “hypercomputer” with a screw driver on a garage workbench are hilarious. Genius and car salesman invent world’s best FPGA programming language and fastest supercomputer simultaneously? Two guys in a DAIO cubical plan to crush FPGA powerhouses with $500 million R&D budgets? Biology undergrads in one week discover stunning FPGA breakthrough?
As the child in the folk tale quietly points out: “Unbelievable.”