The rumors were true! A letter sent out to dealers from Kaleidescape's CEO Cheena Srinivasan says the company has restarted operations with a leaner, more efficient company. He blames the company's downfall on pre-announcing their 4K Strato player which suffered a number of production delays over the past year. These delays compounded and eventually pushed back the ship date for many of the promised features giving the impression to dealers and customer that the company was in trouble.
I can completely understand how easily you can get into this situation. Sales always wants to brag about the next big thing but that's simply not how product development works. Pre-Announcing products is very dangerous for a company and has been the downfall of many both in and outside the CEDIA space. The rule still stands:
"If you cant touch it, it doesn't exist."
Remember that rule walking the CEDIA show floor or reading press releases next week. Its very common for companies to bring fake or non-working product to the show floor to gauge interest, take sales, or simply get feedback. The products they show may never see the light of day. Simply put you should never attempt to sell or purchase something you haven't personally seen in action and used.
Best of luck to Kaleidescape moving forward. The letter sent to dealers is below.