Memory Corp Plc of Edinburgh is looking to float under Rule 4.2 of the London Stock Exchange this month on the back of a method of making defective memory chips perform to their original specifications. The technology is the brainchild of Scottish computer scientist Alex Deas and his colleague Cameron McColl, and involves identifying the defects in each dynamic memory chip and then programming a variance memory control chip to restore the part to its full speed and capacity. The variance memory control chip is then attached to the defective microprocessor. Based at ICL Plc’s old headquarters at Dalkeith Palace, Edinburgh, Memory has patented the technology, which is now ready for full scale production. Manufacturing of the devices will be contracted out. IBM Corp will make Single In-line Memory Module boards, while the soldering of components and testing of the final assembly will be done by other electronic manufacturers, yet to be named, starting next spring. The company reportedly says that defective or partial dynamic RAMs cost 25% of the cost of fully-functional equivalents, but unfortunately, the principles have been too busy selling the business to potential investors to explain the system in a little more detail. Given the cost of testing each part to find out exactly which cells are defective – and presumably some that it buys in any batch of failed chips are complete duds, plus the cost of the control chip and the work in programming it to switch out the dud cells and redirect the chip input-output to address good ones, that 75% margin compared with the cost of good chips doesn’t sound as if it leaves much margin on the finished Single-In-Line Memory module at all. The company is said to believe that with memories currently in short supply and likely to continue so until mid-1996, it can therefore increase its prices on the basis of high demand. Memory plans to offer 10% of the equity to raise UKP2.3m, valuing the company at some UKP20m. The company, which is 12 months old and has no turnover profits or assets. Deas and McColl each has a 30% stake. McColl is quoted as saying Memory’s profits could reach UKP4m on a turnover of roughly UKP13m in 1995. The placing is being organised by Manchester brokers Henry Cooke Lumsden.
