Capping a string of negative developments leading up to its first-quarter earnings report that showed a net loss of US$505 million, Iridium announced Edward Staiano-the company’s vice chairman, chief executive officer and most voracious supporter and motivator-resigned. Reports are that Staiano and Iridium’s board of directors had disagreements over strategy, a point that has beleaguered the first-to-market low-earth-orbit satellite voice carrier since it commercially activated its network last November.
Ericsson said it paid less than US$120.8 million net for Qualcomm’s CDMA wireless infrastructure operations in a deal settled in March. Ericsson spokeswoman Pia Gideon said the net amount also included compensation for cross-licensing of patents the two companies own. Ericsson would not disclose the exact amount it paid Qualcomm for the division.
Toshiba and Oki Electric Industry agreed to jointly develop cellular handsets that will handle voice and data transmission via analog and digital standards, including CDMA. Toshiba said the two companies will supply their new terminals to U.S. equipment maker Audiovox on an original equipment manufacturer basis as early as 2000.
Harris Corp., United States, announced it is repositioning itself as a pure communications equipment company and will spin off its Lanier Worldwide subsidiary to stockholders, creating two separate companies-communications and office equipment.
Schroder Ventures, an international private equity group, has invested SEK1 billion (US$135 million) for a 75-percent stake in Sweden’s AU-System, a provider of internet security and wireless technology, announced the two companies. The other 25 percent of AU-System is owned by Ericsson.
