yup one of my favorite looking sleds
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here they are now
http://www.1redline.com/
and some history
By Jennifer Davies
STAFF WRITER
August 28, 2004
Redline's $12,000 snowmobiles were aimed at high-end customers.
Redline Performance Products has flatlined.
The Vista company that aimed to produce next-generation, luxury snowmobiles filed for Chapter 7 bankruptcy yesterday. Redline said it did not have enough cash to keep going and could not raise additional capital.
The company, which employed 25 people full-time as of March, said it had ceased business operations and that all directors and officers had resigned with the exception of chief executive Mark Payne.
Payne, who recently took over as CEO after serving as chief financial officer since 2002, will remain with Redline to help the transition to a court-appointed trustee. Calls to Payne were not returned.
The trouble is not completely unexpected. In July, the company reported a loss for the quarter through March 31 of $3.4 million, or 69 cents a share, with sales of $10,140. For the fiscal year that ended in March, the company lost $8.8 million, compared with $3.7 million the previous year.
Redline also disclosed in July that it had hired an adviser to evaluate its business strategies and that the company's auditor questioned its ability to remain in business.
It is an inauspicious end for a company that hoped to crack the competitive $1 billion snowmobile market with its advanced designs. Just last year, the company raised $10 million in an initial public offering, with the share price opening at $4.50.
Shares of Redline have already ceased trading on the American Stock Exchange, and the company said it is no longer in compliance with the exchange's listing requirements.
At the time of Redline's May 2003 IPO, the company had sold three prototype snowmobiles and said that the $10 million it raised would enable it to last for 12 months without further financing.
Started by Kent Harle and Chris Rodewald in 2000, the company raised and spent $9 million before the IPO.
Throughout its history, Redline was long on expectations and short on delivery. Buoyed by mentions of the company's technology in such publications as Popular Science and Maxim, snowmobile dealers said there was pent-up demand for Redline's $12,000 models. Redline's snowmobiles were supposed to be unique for their heavy emphasis on design and rear-suspension technology.
But for the most part, demand for Redline snowmobiles never materialized. In July, the company said it had shipped 53 snowmobiles and had orders for 340 more.
Redline had initially manufactured its snowmobiles locally in a 22-employee factory but later outsourced the production to a factory in North Dakota.