Founded in 1995, GoAmerica was meant to develop wireless solutions for the trucking and
limo business. Of course, much has happened since then. Now, the company
is developing a technology infrastructure that provides for seamless mobile
access to e-mail and corporate data – using handhelds, PDAs and 2-way
messengers. GoAmerica calls its technology Go.Web.
Despite tough conditions, GoAmerica was able to launch its IPO in April
2000, raising $148.8 million. But the stock has had big swings. The high
is $19-5/16 and the low is $5-1/4.
But with money in the bank and public stock as currency, expect GoAmerica to
quickly morph its technology. For example, the company recently purchased
Wynd Communications, which develops wireless services for people who are
deaf or hard of hearing. There are about 42 million Americans
who have varying levels of speech and/or hearing problems, which
conventional wireless technologies do not address effectively.
GoAmerica has been adept at forming key relationships. One deal was with
Electronic Data Systems, the huge computer integration company. Both
companies intend on joining forces to create next-generation wireless
technologies. The companies will provide end-to-end mobile
products and services for not only the Global 2000, but also small and
mid-size companies.
Another huge deal was with Hewlett-Packard, which will integrate the Go.Web
technology within the company’s wireless wide area network solutions, as
well as for HP notebooks. The products will offer “always on”
wireless connectivity
According to International Data Corporation, the number of Net-activated
wireless device users in the US will grow 728 percent to 61.5 million in
2003. Despite this, the wireless marketplace is still nascent. Go America
has 8,700 subscribers (although, this was 52% higher
than the levels of the end of last year). In the past quarter, revenues
were $1.4 million, which compares to $355,000 in the same period a year ago.
Losses were $42.1 million. But, there was great improvement in the average
monthly revenue generated per customer. Last year, it was $25.03; last
quarter, it was $38.04.
In the Net wireless space, there will be winners, but also a good deal of
roadkill. But so far, GoAmerica has been very aggressive in its vision.
And it is definitely riding a market with lots of potential.
