Ogo-maker IXI retreats from U.S. market
August 22 2008 - 1:43 pm EDT | Colin Gibbs | RCR Wireless News
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Ogo CT-25E
Photo credit:ixi.com
The bad news continued for IXI Mobile Inc. as the Ogo-maker slashed 25% of its workforce and abandoned the U.S. market.
The Belmont, Calif.-based outfit cut its second-quarter loss to $11.4 million — a vast improvement over the $21.5 million it lost during the same period last year — but saw revenues fall 31%, from $3.2 million in the year-ago period to $2.2 million in the most recent quarter. IXI, which makes messaging- and data-centric devices, reportedly cut 40 jobs and said it is pulling up stakes at home to focus on the European and Asia/Pacific markets.
“We have taken measures to address what can only be characterized as a challenging year thus far,” said CEO Israel Frieder, citing a restructuring plan announced two weeks ago. “After all is said and done, the result of this plan is a leaner and more nimble IXI with a management team dedicated to building the Ogo brand. … We hope that in the near future we will be able to report better operating results and an improved market position.”
It appears any turnaround must come soon, however. IXI’s cash on hand is $8.1 million, down drastically from the $17.3 million it had in the bank at the end of 2007. The company’s stock — which held steady at 16 cents a share following the latest financial results — has declined steadily since reaching a 52-week high of $4.75 per share last September, and shares sold at $1.70 each as recently as July.
IXI was founded in 2001 and first came to market in 2005 through AT&T Wireless Services Inc. with its Ogo messaging device that included a keyboard for messaging, but no voice capabilities. The carrier dropped the offering, however, after it was acquired by Cingular Wireless L.L.C.
