Trouble for Sonic Foundry

Glenn Reynolds reports that Sonic Foundry, maker Acid music creation software and lots of other cool stuff, is in financial trouble:

Well, lots of companies are, these days, but they have terrific products in their Acid music software (I did the music for my wife’s documentary, largely using Acid Pro 4.0, and it rocks) and they’ve just released their new Vegas Video 4 video-editing software, which is rumored to be great, and to have an integrated DVD-authoring package that actually works, something not to be taken for granted. I’d hate to see them go under. How come so many companies with crappy products manage to stay in business?

But he reports good news from a reader with some inside knowledge as well:

They have great ideas but horrible business skills. They have brought on people to help them with this. Sonic Foundry is stripping away its business units that lose money so that they can focus on their core business. It may also be noted that they are “plugged into” the local and state political structure. I suspect that they will get enough help so that they can restructure and come out stronger. The have a great product and a loyal customer base.