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Adaptec's on the block

After more than two years of trying to push out Adaptec CEO Sundi Sundaresh, minority investor Steel Partners finally succeeded Thursday. Sundaresh resigned and Steel Partners installed its managing directors John Quicke as acting CEO and president with the intention of selling Adaptec.

The question is, who will buy and what’s left of the company to sell off? It’s no secret that Adaptec’s business has gone south in recent years. Adaptec lost $14 million for its last fiscal year that ended in March. It lost $1.8 million last quarter, and revenue dwindled to $18.4 million – down from $32 million the previous year.

Maybe a vendor looking to beef up its SAS RAID business – perhaps PMC Sierra – will want Adaptec’s core business. Or Adaptec might spin off one of its new interesting products — the MaxIQ hybrid solid state/hard drive storage system.

But the most valuable part of Adaptec isn’t its technology. It’s cash. Adaptec ended last quarter with $386 million in cash, cash equivalents and marketable securities. That’s more than 90% of its market cap of $416 million. So even if a buyer steps up, don’t assume it will view Adaptec’s technology as a valuable asset.

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