3D audio chip specialist Aureal Semiconductor Inc has gone further into the red announcing net losses of $17.7m for the full year, up from losses of $17m for the same period last year. The company’s revenue is down as well, falling a massive 53% for the full year to $1.6m, and dropping 12% on the fourth quarter to $180,000. The company said that one reason for this is that the results do not feature first shipments of its new semiconductor, the Vortex AU8820, a PCI-based AC ’97 Digital Audio Processor. The AU8820 chip provides support for the company’s A3D audio technology, which is based on Microsoft’s Sound3D applications programming interface and simulates sound coming from many directions, although the system runs on ordinary speakers or headphones. Mid year, Aureal gained $15.3m in additional funding, which consisted of a private placement of common stock and an expansion and extension of its line of credit. Two of its largest shareholders, the TCW Group Inc and DDJ Asset Management also increased their ownership positions.
