YOU ARE AT:Archived ArticlesCORSAIR REPORTS LOSS WHILE DEVELOPING PREPAID AND OVERSEAS BUSINESSES

CORSAIR REPORTS LOSS WHILE DEVELOPING PREPAID AND OVERSEAS BUSINESSES

PALO ALTO, Calif.-Corsair Communications Inc. reported revenues for the fourth quarter and
year ended Dec. 31 were $15.3 million and $65.2 million, respectively, slightly lower than revenues for the 1997 fourth
quarter and year, $19.7 million and $60.9 million, respectively.

The company also announced a joint-marketing
venture with TruePosition Inc. Corsair signed a letter of intent with TruePosition to cooperate on joint marketing of
network-based wireless transmitter location products and services.

A definitive agreement is pending.

Corsair in
September announced it was entering the wireless location market with a network-based location system called
PhoneTrack. The company since decided it was more beneficial to save on development costs by partnering with a
large player in the location market.

“It makes sense to pay attention to not just the technology, but also the
marketplace,” said Bill Taliaferro, director of product marketing at Corsair.

Under the agreement with
TruePosition, Corsair would make certain intellectual property available to TruePosition and would no longer
manufacture the PhoneTrack system.

Corsair said it will be involved in the eventual sales and marketing efforts of
TruePosition’s system as well as the installation and maintenance of the systems.

Corsair recorded a net loss of
$754,000, or 4 cents per share, for the fourth quarter, compared with a net gain of $1.5 million, or 9 cents per share, for
the same time the previous year.

For fiscal 1998, Corsair recorded a net loss of $6.9 million, or 39 cents per share,
compared with a net loss of $8.6 million, or 86 cents per share, for fiscal 1997.

Mary Ann Byrnes, president and
chief executive officer of Corsair, said the company achieved its main goals of establishing PhonePrint in new markets
outside the United States and getting a strong foothold in prepaid business.

“In order to focus on these two
opportunities going forward, we have decided to streamline our operations and change our product mix for the best
growth,” said Byrnes.

The company is doing this, according to Byrnes, by “focusing more resources on
PrePay and making changes in the areas of wireless location and billing systems.”

Corsair also announced it
has reached an agreement with Wireless Billing Systems Inc. to sell substantially all assets of its Communications
Resource Manager billing system and its associated products.

ABOUT AUTHOR