OWINGS MILLS, Md.-Wireless enterprise company Aether Systems Inc. reported declining revenues and losses, and said that although its earnings were lower than expected, the company’s financial restructuring efforts continue to show positive signs. Interestingly, Aether said it will explore “strategic alternatives” to more quickly reach profitability-language that sometimes indicates mergers or acquisitions.
“Reaching profitability in the short term remains a key priority, and as such we have continued to aggressively manage costs and reduce expenses,” said Dave Oros, Aether’s chairman and chief executive officer. “So while revenue was somewhat below expectations, we have continued to work at improving our overall financial position. We also are continuing to evaluate our businesses and explore a variety of possible strategic alternatives that we believe would enhance our ability to become profitable more quickly and thereby reduce our consumption of cash to fund operating losses. This process, combined with the substantial organizational restructuring and streamlining we have now largely completed, likely has had a near-term impact on top-line performance.”
Aether reported third-quarter revenues of $27.2 million, down from the $31.7 million it reported in the same quarter last year. The company’s net loss stood at $9.9 million in its third quarter, down from its $96.6 million net loss in the same quarter last year.
Aether’s struggles come shortly after a new study from the Yankee Group that gives little hope for pure-play wireless enterprise companies. The firm said only 1 percent of enterprise buyers would use products from a wireless-only vendor, preferring instead the IT industry’s larger providers.
