Airnet Communications (NASDAQ:ANCC)
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AirNet Communications Corporation (NASDAQ:ANCC) today
announced the following business update.
Large Operator Field Trial
On March 28, 2006, AirNet Communications announced that it had
concluded the most recent phase of field trial testing of the
SuperCapacity(TM), adaptive array base station with a large operator
in a dense urban, major metropolitan market. As a result of an
April 25, 2006 meeting with senior management, the large operator has
advised AirNet Communications that the field trial would not be
extended. AirNet does not expect the large operator to purchase any
products from AirNet, and the trial system will be de-commissioned and
returned to AirNet.
Sale of New Products to Reseller for Distribution to Large
European Operator
The Company also announced that it has executed a reseller
agreement and sold its latest compact base station product to a
reseller who planned to resell the base stations to one of the largest
operators in Europe. The portable RapidCell(TM) base station enabled
with iBSS(TM) software eliminates the need for costly network elements
such as the base station controller (BSC), packet control unit (PCU)
and transcoding and rate adaption unit (TRAU). Through the elimination
of these hardware components, AirNet's customers can directly connect
to a mobile switching center (MSC) via traditional SS7 or Internet
Protocol over the well-established "A" interface. The reseller has
purchased six portable laboratory RapidCell base stations enabled with
the iBSS software for approximately $350,000, and AirNet plans to
supply the reseller with these units during the second quarter of this
year.
Reduction in Force and Continuing Adverse Market Conditions
Over the last several years, AirNet Communications has undergone
extensive restructuring due to adverse market conditions. The Company
has focused on improving the quality of its existing products,
developing new products to address market niches in GSM, reducing
product costs, reducing overall operating expenses, turning inventory
faster, and improving collections. The Company has made great strides
in all of these areas. However, as a result of continuing adverse
market conditions for AirNet's products and the intense competition in
the GSM global market, AirNet has further restructured the Company by
implementing a reduction of approximately 35 personnel in its work
force. AirNet will now have approximately 50 employees, and will focus
its sales and marketing efforts on near term opportunities to sell
pre-existing inventory and the portable RapidCell base station with
iBSS software. If the Company is unsuccessful in generating meaningful
sales and collecting cash from such sales in the next few weeks, the
Company may commence an orderly wind down of its business operations.
Sale of the Company/Strategic Options
During the next few weeks, the Company will also continue to
explore strategic options with its investment advisor in parallel to
sales and marketing activities in the ordinary course of business. The
Company's investment advisor together with members of the senior
management will be assessing the interest of certain potential
strategic partners who may be candidates to purchase AirNet
Communications, or otherwise all or some portion of AirNet's assets.
The Company's Board of Directors plans on meeting during the week of
May 15, 2006 to review any interest received during this process.
Nasdaq Listing Status
On February 15, 2006, AirNet announced that it had received a
notice from the Listing Qualifications Department of The Nasdaq Stock
Market confirming that for the preceding thirty consecutive business
days, the bid price of AirNet's common stock closed below the
$1.00 minimum per share requirement for continued inclusion under
Marketplace Rule 4450(a)(5). The Company has also previously disclosed
that other continued listing requirements, including stockholders'
equity and the market value of securities in the public float, may not
be met in the near future. The Company has evaluated transferring its
listing to the Nasdaq Capital Market (formerly the Nasdaq SmallCap
Market) and concluded that such a transfer, if granted by the Nasdaq,
may last only 1 to 2 quarters before similar continued listing
concerns manifest. Accordingly, the Company currently intends to
contact existing market makers to explore the possibility of listing
securities of AirNet Communications on the OTC Bulletin Board.
About AirNet
AirNet Communications Corporation is a supplier of wireless base
stations and other telecommunications equipment that allow service
operators to cost-effectively and simultaneously offer high-speed
wireless data and voice services to mobile subscribers. AirNet's
patented broadband, software-defined AdaptaCell(R) SuperCapacity(TM)
adaptive array base station solution provides a high-capacity base
station with a software upgrade path to high-speed data. The Company's
RapidCell(TM) base station provides government communications users
with up to 96 voice and data channels in a compact, rapidly deployable
design capable of processing multiple GSM protocols simultaneously.
The Company's AirSite(R) Backhaul Free(TM) base station carries
wireless voice and data signals back to the wireline network,
eliminating the need for a physical backhaul link, thus reducing
operating costs. AirNet has 68 patents issued or filed; and has
received the coveted World Award for Best Radio Access Product in 2006
and for Best Technical Innovation in 1998 from the GSM Association,
representing over 400 operators around the world. More information
about AirNet may be obtained by visiting the AirNet Web site at
http://www.airnetcom.com.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995 and Other Applicable Law
Certain statements in this news release may constitute
forward-looking statements within the meaning of the United States
Private Securities Litigation Reform Act of 1995 (the Reform Act),
Section 27A of the United States Securities Act of 1933 and Section
21E of the United States Securities and Exchange Act of 1934. These
forward-looking statements may relate to anticipated financial
performance, management's plans and objectives for future operations,
business prospects, market conditions, financial forecasts and other
matters. All statements contained in this news release that do not
relate to matters of historical fact should be considered
forward-looking statements, and are generally identified by words such
as "anticipate", "prospects", "believe," "estimate," "expect,"
"intend," "plan" and "objective" and other similar expressions.
Readers should not place undue reliance on the forward-looking
statements contained in this news release. Such statements are based
on management's beliefs and assumptions and on information currently
available to management and are subject to risks, uncertainties and
changes in condition, significance, value and effect. Such risks or
uncertainties include the following: there can be no assurance that
the Company will be successful in obtaining new business or that any
of the Company's customers or OEM resellers will purchase any further
products from the Company; that the Company will be able to retain any
key personnel; that any third parties will express an interest in
purchasing the Company, or otherwise all or some portion of the
Company's assets; that the Company's lenders may foreclose on all
assets of the Company (including all intellectual property rights) in
the event of a default under the agreements associated with existing
senior debt and convertible debt; and that the Company may not be able
to continue to operate as a going concern in the absence of new sales
or additional investment capital. These and other risks are detailed
in reports and documents filed by the Company with the United States
Securities and Exchange Commission. Such risks, uncertainties and
changes in condition, significance, value and effect, many of which
are beyond the Company's control, could cause the Company's actual
results and other future events to differ materially from those
anticipated. The Company does not, however, assume any obligation to
update these forward-looking statements to reflect actual results,
changes in assumptions or changes in other factors affecting such
forward-looking statements.
The stylized AirNet mark, AirNet(R), AdaptaCell(R) and AirSite(R)
are registered trademarks with the U.S. Patent and Trademark Office.
Super Capacity(TM), iBSS(TM), RapidCell(TM) and Backhaul Free(TM), are
trademarks of AirNet Communications Corporation. Other names are
registered trademarks or trademarks of their respective companies or
organizations.