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The woes of the fixed wireless industry have taken their toll on Hybrid Networks Inc. The San Jose, Calif., company, which develops and makes fixed wireless systems sold to telecom providers, is planning to cease operations by the end of April.
Hybrid announced the move late last week after failing in its efforts to find a buyer or merger opportunity. The company also announced Friday that it is cutting 80 percent of its remaining staff of 40.
The company, founded in 1990, said that it expects revenues for the first quarter of 2002 to be no more than $700,000 and that after paying employee compensation, termination and other expenses, it will have cash and accounts receivable of less than $1 million, leaving it without enough liquidity to stay in business.
Hybrid sold a line of wireless broadband routers and equipment on MMDS (Multichannel Multipoint Distribution Service) fixed wireless frequencies to service providers offering wireless broadband to consumers. Among its customers were Sprint Corp. and WorldCom Inc.
Hybrid announced in February that $5.5 million in debt was to come due on April 30. For fiscal 2001, ended Dec. 31, the company had a net loss of $10.7 million on net sales of $27.9 million.