Netpliance pulls I-opener Web access device
Low sales and bad results
Netpliance has pulled its I-opener Web access device from sale following disastrous third quarter results.
In an attempt to stem the flow of money from the company bank account, Netpliance has said it will license the Web access device, which runs the QNX operating system, to other companies, most notably AT&T.
In an attempt to improve the company's fortunes, Netpliance is trying to reposition itself as an infrastructure and managed services company. As part of that move it said it would continue to support the I-opener device.
The company's CEO, John McHale, said that the Netpliance was forced into its current position by the investment community, which is increasingly unwilling to support subsidy based business models. He said that he hoped the proposed business model would change the company's fortunes.
The company is shedding 93 jobs - 38 per cent of its workforce - after it lost $41.9 million in the quarter on revenues of $3.8 million in the quarter ending September 30.
Netpliance had been selling its I-opener device for $99 and hoping to make up the shortfall with monthly service contracts. Of its $3.8 million revenue, only $230,000 was from sales of the device. The bulk of the income, $3.4 million, was from subscription sales. ®