Wireless data carrier Motient Corp. warned in Security and Exchange filings that it will soon lose its largest customer, UPS. Motient said it plans to counteract the loss by further lowering its network costs, beefing up its resale agreements with Verizon Wireless and T-Mobile USA Inc., and working to expand its telemetry business.
Motient said UPS is moving on to other next-generation wireless network technologies, leaving behind Motient’s slower-speed wireless data network. Motient said UPS prepaid for its network usage through next year, and Motient said it may not see any additional revenues from the shipping giant.
Thanks to its new $12.5 million line of credit announced in January, Motient said it expects to have enough funds to reach break even in the fourth quarter of next year. Previously, Motient said it expected to reach break even in the early part of next year.
In its SEC filing, Motient also said it is working with the SEC to restate some of its earnings for 2000 and 2001. The company said it has $3.6 million of cash on hand and has so far claimed $4.5 million of its $12.5 million credit facility.
