From other comments, ditching 78% of their revenue but not going out of business. They still make power supplies. I think the CEO sees it as exiting a unpredictable market where they have little control over what they sell.

They also make top of the line priced motherboards, seemingly for enthusiasts.

> How does that work?

Not at all complicated.

1. They have no debt based on the video

2. They own their HQ so no long term rental contracts. They would need to sell the building.

3. California's Labor Code contains a presumption that employees are employed at will. This means that either the employer or the employee may terminate employment at any time, with or without cause or prior notice.

4. They file and pay any outstanding taxes.

5. Since EVGA is a Stock Company they need to hold an election to dissolve then file two forms with the California SoS and you are done. The required forms each are one page long, takes a few minutes to file them online but here's the paper version: https://bpd.cdn.sos.ca.gov/corp/pdf/dissolutions/corp_stkdis...

They’re not publicly traded. That’s how. They can do whatever they want within the letter of the law and aren’t beholden to shareholders.

Revenue does not matter on a private company profit is more meaningful. What’s the point of doing 10b in volume if you loose money on it and have no path to profit. It’s smarter to do 1B and make 2-300m profit

revenue always matters, it's how you know market share, it's how you know margins, etc. etc.

But having a large share of an unprofitable market produces little actual value to your investors if you have no pricing power.

It only makes sense to peruse it in tech where you are looking to unload it onto the next sucker. If you aren’t planning to do a rug pull or go after government subsidies it’s a bad plan

I think you're implicitly assuming the employees want to work there forever.

The CEO told GN there won't be another round of layoffs; Instead there will be voluntary attrition.

Pretty sure the implication is that everyone there, not just the CEO, is burned out after 2 years of covid, supply chain issues, and dealing with Nvidia. Employees are planning to leave regardless of EVGA's plans so it doesn't make sense to stay in a low margin market.

it sounds like they are taking losses selling video cards. Closing a portion of business that is actively losing money on every card sold, without even accounting for lots of overhead, is not going out of business, its stopping the bleeding which they can't do any other way because Nvidia controls every other option.

So they'll continue to make power supplies and whatever, but they're done with video cards, where they lose money.