In its second-quarter results Vyyo, which produces wireless telecom equipment, included a statement that with effect from 14 August it had ceased substantially all of the business operations of its subsidiary Shira and terminated substantially all of Shiras employees.

Vyyo is exploring the sale of the business to its former management team, but if this is not achieved the firm will shut within two months.

Vyyo, which made losses of 3.9m ($6.1m) on net revenues of 1.2m in the second quarter, said it was shutting Shira based on the continuing decline in sales, recurring losses and its inability to penetrate the market.

European director Andy Gotch and UK sales director Ray Ringsell were among the staff laid off.

Its a shame really because it was just starting to take off, said Gotch.

In the UK, Shira had two customers for its Xpressi automated workflow, Reed Business Information and TFG. Gotch also said that until it was wound up it had been on the verge of several other deals.

There was no word from Shira on how it planned to support its customer base.

Support, its not in my control, but if it was Id try to look after them, said Gotch.

Shira started as a provider of software and hardware to integrate CEPS systems into a PostScript environment. It was set up by former Scitex employees. Its products were OEMd by several pre-press firms.

It latterly tried to reinvent itself as a workflow provider with Xpressi.

Vyyos chairman and chief executive is Davidi Gilo, who attempted to buy Scitex in the mid-1990s.