HACKENSACK, N.J.-Due to the high cost of managing roaming CDPD subscribers, wireless enterprise software and service provider GoAmerica Inc. announced it deactivated several thousand CDPD customers and said it plans to sell off the rest of its CDPD subscriber base, which numbers about 18,000.
“Our emphasis on adding high quality subscribers, while reducing our exposure to CDPD roaming costs, drove our gross profit on subscriber revenue to a record $2.1 million during the second quarter,” said Frank Elenio, GoAmerica’s chief financial officer. “In order to continue this trend of margin expansion by focusing on growth of our higher margin services, we have decided to sell our CDPD subscriber base and are currently evaluating several offers for these subscribers.”
GoAmerica ended its second quarter with about 133,000 total subscribers, down from about 153,000 in the previous quarter.
Due to the termination of its unprofitable CDPD subscribers, as well as a decline in equipment sales, the company reported shrinking revenues compared with previous quarters. GoAmerica’s total revenues came in at $9.6 million for the second quarter, compared with $10.4 million in the first quarter and $9.8 million in the second quarter of 2002. The company’s net loss was $11.3 million for the quarter.
Investors decried the results, sending the company’s stock down more than 20 percent after the news to about 35 cents per share.
