Vyyo Inc. reduced its work force by approximately 75 percent to less than 50 employees due to “uncertainty in the fixed wireless market and deteriorating economic conditions,” according to John O’Connell, Vyyo’s chief executive officer, although the company said it is not considering bankruptcy.
“The global outlook for service provider capital spending continues to deteriorate and we have no visibility when either the fixed wireless access market or economic conditions will improve,” O’Connell said.
Sheryl Lewis, a spokeswoman for Vyyo, said the company was hit hard by WorldCom Inc.’s decision to cut back on its expenditures going forward, but if it was going to file for bankruptcy, it would have done so by now.
WorldCom awarded Vyyo a major contract last December to provide the carrier with hubs and modems for its multichannel multipoint distribution services network. It was that contract that thrusted Vyyo into a respectable rank among MMDS equipment providers at a timrs in the past six months, but they are not material at this point since all are in trials. The customers are in Latin America and China.
“We’re luckier than a lot of companies in this space who don’t even have a product,” Lewis said.
Vyyo also announced the board of directors approved a one-for-three reverse split of its outstanding shares of common stock, subject to shareholder approval.
