Originally Posted by SJHT
Jim indicated some info coming out in the next few weeks. We shall see.... SJ
There will a statement from K, last time I checked it was still being drafted, and K is also very busy working on component and Store improvements, so exact timing was not discussed, but should be soon.
All of my contact with K tells me the company is fine and moving forward. For those that don't quite understand basic business concepts I share the following. When a company finds itself in a negative financial situation the cause is usually either an inability to service debt, or an inability to cover normal operating expenses (cash flow issues). Of course there are factors that can bring about either or both of these situations, and those need to be addressed if the situation is to be remedied. With K, it was cash flow, not debt. The company employed many highly paid engineers, and staff. All very skilled, and dedicated employees.
Unfortunately, business model changes, primarily the focus on the K Store, along with a change in suppliers and manufacturing changes to accommodate the inclusion of the Encore line, caused a strain on the cash flows. In addition, at just about the same time, a supplier was unable to fill a critical order for component parts related to the Encore line and this added to the cash flow problem. All of this led to the temporary shutdown we all experienced. Corrections were made, positive cash flows resumed, and the company continues to move forward, and is very optimistic about its future. Good things are coming to K but I'm not at liberty to say more. (Not trying to be "I know something you don't" here, I don't speak for K in any capacity, and do not want to state something that could change.)
The Store's operation is more complex than most people assume, the many, many contracts in play affect just about every aspect of the Store. Which versions of content K has for release is determined by the studios, NOT K (I've probably stated that in 20 posts). They continue to work with the Studios for additional content, and enhanced versions of the content they currently offer, and they add these to the Store as soon as available (keep in mind that their movie guide service adds different functions to the content and this adds a layer of additional time to get it available in the Store).
I can tell you that the current staff at K are dedicated to providing the very best in both products and services, and the priority is focused on moving the company forward. Statements about their specific plans, or financial condition, like just about every private company I know, will not likely be shared, but I do know that they want to update info regarding some already stated plans, and hopefully this will happen soon.