Alias Research Inc, Toronto computer-aided design software developer, has turned to Silicon Graphics Inc, Mountain View to get it out of a tight corner. The company has had to restate its losses for the third quarter upwards, showing $8.7m against the previously reported $7.6m loss, after elimination of investment tax credits. The loss included a $5.9m charge for doubtful accounts receivable, which ran down its working capital. Silicon Graphics has therefore granted it a $5m loan in return for warrants to buy 1.5m Alias shares, 22% of the enlarged total, at fair market value. The company hopes to be back in profit by March when the loan becomes due, enabling it to cancel all but 250,000 of the warrants when the loan is repaid. The two companies also agreed to collaborate on product development and sales over three years.
