NEW YORK-In response to numerous inquiries by investors, Geotek Communications Inc. said April 7 it knows of no fundamental reason for the recent decline in its stock price.
Geotek stock, which trades on Nasdaq, closed April 4 at a share price of $4.125, a 52-week low. The 52-week high was $14.875, according to Nasdaq. Geotek stock closed April 8 at $3.375.
Geotek Communications, headquartered in Montvale, N.J., provides integrated wireless communications solutions to small and medium-size businesses with mobile workers who operate in regional or major metropolitan markets.
Yaron Eitan, chief executive officer, reported last week that Geotek had met first-quarter subscriber targets and was on target for the launch of its next market-Tampa, Fla.-at the end of April. The company is selling its services in eight major metropolitan markets and plans to open a total of five new markets by the end of June.
However, Eitan also told securities analysts a month earlier that Geotek had virtually stopped adding customers between November and February in order to work out glitches in the software that runs its wireless voice and data network. That process has been successful, company officials reported.
Geotek said it had approximately 1,600 subscribers at the end of December, and had sold its services to an additional 1,000 between mid-February and the end of March.
Geotek Technologies, a subsidiary of Geotek Communications, recently announced receipt of $50 million in equipment orders from Anam Telecom and Hyundai Electronics to support the buildout of one national and five regional Frequency Hopping Multiple Access technology networks-two of which are scheduled for commercial operation later this year. Geotek Technologies estimates it will receive a total of $150 million to $200 million from the sale of FHMA equipment in Korea during the next few years.
