HomeRF Vendor Proxim Staggers
August 01, 2001
Reports lowered revenues, profits
Wireless networking vendor Proxim, Inc. (Nasdaq:PROX) said Tuesday that its revenues for the quarter that ended June 30 shrank slightly compared to the same quarter last year.
The company said that it had $23.25 million in revenue for the quarter compared to $24,523 million in the same quarter a year ago. However, its revenues for the first six months of 2001 were $52.75 million compared to $44.574 for the six months of last year.The company reported income for the quarter of $801,000. However, that was down from the $3.267 million in income reported for the same quarter in 2000.
Proxim has been a leading proponent of HomeRF wireless technology. While initially popular for home users, competing 802.11b technology for the home has been gathering momentum because, until recently, its 11Mbps data speeds were faster than HomeRF. However, products based on the updated HomeRF specification are about to be released that nearly match 802.11b speeds.
A number of vendors including Intel have stopped developing HomeRF products, switching instead to 802.11b. Proxim claims it has patents that cover portions of 802.11 wireless technology and also has invested in a developer of chipsets for 802.11a wireless technology.