RoW Update

CSI Wireless files counter suit against AudiovoxCalgary-based CSI Wireless Inc. has denied allegations its California-based subsidiary broke terms of an agreement with Audiovox Communications Corp. The company has in turn filed a counter suit against Audiovox."Audiovox alleges that it has suffered damages as a result of an alleged breach by CSI Wireless of an alleged agreement to manufacture and supply Audiovox with fixed wireless digital terminals and, in the alternative, damages for an alleged breach of duty of good faith and fair dealings by refusing to continue to negotiate over unresolved terms," CSI Wireless noted in a July 3 news release. In responding to the complaint in an August 3 news release, CSI Wireless denied each of the claims for damages. "In addition, CSI Wireless has advanced counter-claims against Audiovox, including claims for breach of contract, breach of duty of good faith and fair dealing," the company noted. More details. RIM files another complaint against Good TechnologyResearch in Motion Ltd. has filed a third complaint against Good Technology claiming that the U.S. company has allegedly engaged in unfair competition, false advertising, trademark infringement and trademark dilution resulting in the unlawful use of the RIM and BlackBerry trademarks. RIM filed the suit in United States District Court for the District of Delaware. In June, RIM filed separate complaints against Good alleging the company is infringing on four patents within its Wireless Integration Patent Portfolio (RoW, June 24/02). Last month, the company filed an additional complaint alleging Good’s infringement on a portion of its Copyright Portfolio associated with the user interface (RoW, July 22/02). Wi-LAN commences legal action against competitorWi-LAN Inc. has taken further steps to ensure its ownership of orthogonal frequency division multiplexing (OFDM) intellectual property. On July 24, the company announced that it has begun "legal action in Canada against a private Canadian company claiming to product non-line-of-sight fixed wireless devices utilizing orthogonal frequency division multiplexing (OFDM) technology." In June 2000, Wi-LAN launched a US$780-million lawsuit against Radiate Communications, a takeover target of Cisco Systems at the time. It also stated that it would seek legal action against any company using OFDM technology in wireless devices (RoW, Nov. 27/00). Wi-LAN believes that the Canadian company in question is infringing upon Canadian patent number 2,064,975. Executives of the Calgary-based company are not commenting further on the matter at this time. More details. Plaintree struggles to find cash infusionPlaintree Systems Inc., a maker of free-space optics communications equipment, has once again announced that its ability to continue as a viable enterprise is under significant pressure. In releasing its Q4 and year-end financials, which showed an improvement in losses, the Ottawa-based company warned again that if it can’t secure some fresh financing, it may have to close its doors. Despite a recent infusion of cash from its largest shareholder, the situation remains dire (RoW, July 9/02). In May, the company laid off two-thirds of its staff in a move to conserve cash and cut expenses (RoW, May 27/02). Plaintree continues to feel the pinch from a lack of spending from the global carrier community. More details. Sierra Wireless continues to show leadershipVancouver-based Sierra Wireless Inc. has shipped new CDMA 1X wireless modem cards to North America’s four major CDMA carriers: Bell Mobility, Telus Mobility, Sprint PCS and Verizon Wireless. The company has a stranglehold on the wireless modem card market having signed supply agreements with the continents four dominant CDMA carriers. While the GSM mobile protocol remains the dominant standard worldwide, North Americans have generally thrown their support behind the CDMA technology. More details. Detroit-Windsor tunnel to get alert systemAn Internet and wireless alert system is being installed in the Detroit-Windsor Tunnel that should help local police and other agencies better deal with critical situations in the tunnel. Messages will be sent via email to desktop computers or via text messaging to wireless devices such as cell phones to the agencies responsible for law enforcement, public safety and other tunnel functions. "Emergency communications is vital to the operation of a safe and efficient border crossing, and this system will alert key parties instantly in their cars, in the field, at their desks, anywhere they are," Neal Belitsky, VP of operations for the Detroit & Canada Tunnel Corp., recently told the Detroit News. More details. EARNINGS REPORTS Infowave posts increased revenueInfowave Software Inc. has posted a quarterly sequential increase in revenue growing the top line to US$518,000 in Q2 2002 from US$325,000 in Q1 2002. Revenue for this quarter was, however, significantly lower than the US$873,000 posted in last year’s second quarter. Despite a decrease in revenue from last year, the company is continuing to improve its cash burn. This quarter’s cash burn decreased 20% from the previous first quarter and 53% from last year’s same quarter. Earlier this year, the company began a major restructuring to improve its cash position and reduce expenses. Infowave subsequently formed an office of the president to review corporate wide operations (RoW, April 30/02). During the quarter, the company put more emphasis on sales execution and product development as part of its restructuring, which also included a reduction in staff head count, facilities consolidation and improved operational efficiencies. More details. WaveRider continues to post impressive revenueWaveRider Communications Inc. has posted another quarter of increasing revenue growing its top line to US$2.345 million in Q2 2002 from US$1.613 million in Q2 2001. The 45% jump in revenue is largely attributed to sales south of the border with 81% of revenue for the second quarter coming from U.S. sales. The Toronto-based company is also decreasing its quarterly losses. Losses for Q2 were cut in half to US$1.4 million from Q1 levels of US$2.9 million. More remarkable is the decrease from the same period last year, which recorded a loss of US$5.2 million. More details. Wi-LAN posts strong revenue, still lower than previous yearWi-LAN Inc. has posted $5.8 million in revenue for the three months ended July 31, marginally lower than the $6.2 million brought in during the previous quarter. Year-to-date revenue stood at $16.8 million at the end of July. The Calgary-based company has warned that revenue for the entire year should be lower than previously projected. It will, however, be higher than 2001 revenue of $24.8 million. The modification in guidance is a result of a 3.5 GHz spectrum licensing process currently taking place in China, which has introduced additional uncertainty on the timing of sales. More details. Norsat posts lower revenueNorsat International Inc. saw second quarter revenue drop nearly 30% compared to the same quarter last year. Revenue was $3.1 million in the three-month period ended June 30 compared to $4.3 million the previous year. Lower revenue can be attributed to delays in large satellite infrastructure projects, which in turn had an impact on Norsat’s top line from its Open Networks and Microwave Products divisions. The Burnaby BC-based firm also experienced higher expenses in the last quarter as it put more emphasis on sales and marketing. While SG&A expenses increased by about $400,000, the majority of the increase was in sales and marketing. More details. INTERNATIONAL NEWS U.S. government agencies finally give up some spectrumSeveral U.S. government agencies have agreed to free up some much-needed spectrum allowing commercial mobile wireless operators to implement third-generation wireless networks. This ends an acrimonious debate between the government and the wireless operators.The National Telecommunications and Information Administration will now open up 135 MHz of spectrum in two separate bands: 90 MHz in the 1710-1770 MHz and 45 MHz in the 2110-2170 MHz. The Department of Defense (DOD) and other federal agencies have wanted to keep valuable spectrum in the 1710-1755 MHz and 2110-2170 MHz bands for military use only. Agencies affected by the decision are: NASA, Department of Justice, Department of Treasury, the U.S. Postal Service, the Department of Transportation and the DOD. More details.

RoW Update

News | August 13, 2002

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