More idle speculation below.

The SonicBlue stock price doesn't directly reflect whether the company will go out of business. Certainly, there have been no warnings about SonicBlue's continuing business viability (versus Metricom, for example, which telegraphed their chapter 11 bankruptcy filing months before it actually happened).

The main effect, at least right now, of the drop in stock price would be its effect on employee morale, perhaps increasing turnover. Lowered stock prices also tends to make SonicBlue less likely to buy out other companies and correspondingly more likely to get bought out themselves.

In the event that SonicBlue's bottom-line numbers started getting in deep trouble, you'd probably start expecting to see announcements about returning to their "core business" or similar cover speak to justify jettisoning unprofitable products or divisions of the company. The empeg guys are, in my estimation, the least likely to be dumped as they're tied into arguably the best brand that SonicBlue has: the Rio line of audio products.

In short, don't worry about it right now. If things truly go wrong at SonicBlue, you can bet you'll be hearing about it here.