Proxim Sees Slow Q2, Chairman Resigns
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Wireless network equipment maker Proxim warned it will miss second-quarter financial forecasts in the wake of a sweeping restructuring. The Sunnyvale, Calif., company also said its chairman and vice chairman have resigned.
For the three months ended June 27, 2003, Proxim expects a net loss of 40 cents to 42 cents (using generally accepted accounting principals, or GAAP) per share on revenues of approximately $34 million to $35 million.
Based on pro forma accounting methods, which excludes the costs of restructuring and patent infringement litigation ($1 million during the quarter), the loss per share will likely come to 3 cents to 4 cents per share.
A Proxim spokeswoman did not immediately respond to a request for comment.
In a statement Frank Plastina, Proxim's president and CEO, said, "The progress we are making in our efforts to return to profitability and positive operating cash flow are expected to better position Proxim to seize the significant growth opportunities in the Wi-Fi and wireless networking market."
Final results will be announced July 22.
Also, Proxim said Jonathan Zakin and David King, chairman and vice chairman, respectively, have left the company. The move comes two months after the arrival of new CEO Frank Plastina, who thanked the pair for their efforts.
The pair's immediate plans were not disclosed.
Zakin said, "Building Proxim has been an outstanding opportunity and a great experience. Now, with the integration of the two acquisitions we completed last year, I'm ready to move on to new challenges."
In other news, Proxim today said it will enter the Eastern European wireless networking market via a newly signed distribution agreement with Winncom Technologies, a subsidiary of ARC Wireless Solutions.
Under the agreement, Winncom will distribute distribute Proxim products in Russia and other countries. Financial terms were not disclosed.