Nasdaq told InfoSpace it didn’t comply with trading board’s minimum bid price standard and it had 90 days to establish a 10-day period during which its stock must trade above $1. Its shares have been ranging around 46 cents. COO Ed Belsheim said “with our blue-chip list of customers, strong balance sheet and no debt, InfoSpace is in a strong position to maximize shareholder value and achieve profitability.” In its most recent 10-Q, however, InfoSpace said: “We have incurred losses since our inception and, as of March 31, 2002, we had an accumulated deficit of approximately $1.2 billion… For the three months ended March 31, 2002, our net loss was $240.5 million… If we do achieve profitability, we may not be able to sustain it.” It added that “trading price of our common stock has historically been highly volatile. Since we began trading on December 15, 1998, our stock price has ranged from $0.75 to $138.50 (as adjusted for stock splits).” InfoSpace closed Fri. at 51 cents, up 5 cents (10.87%). InfoSpace provides wireless and Internet software and application services. Its Web portal clients include America Online, Disney and Verizon Online. Its wireless customers include Cingular, Verizon Wireless, AT&T Wireless and Virgin Mobile.
Two pro-independent ISP groups released separate studies Mon. saying FCC rulemakings were in danger of eliminating independent ISPs, echoing charges by other ISPs and affiliated groups (CD July 1 p1). Flurry of ISP activity is result of reply comments deadline for FCC in its broadband wireline rulemaking, one of several broadband actions drawing attention of ISPs. While several groups claiming to represent ISPs agree proposed FCC rules would hurt their ability to compete in broadband, there appeared to be disagreement on extent to which Bush Administration was endorsing inclination of FCC Chmn. Powell to favor so-called intermodal competition between broadband platforms, rather than competition among specific companies or sectors on single platform.
High-tech industry was active on 8th floor of FCC last week, with 2 high-level ex parte meetings with commissioners and numerous filings, all on broadband deployment. Commission is seeing schism in high-tech, however, with one group pushing for Bells to be free of unbundling obligations on new fiber deployments while faulting cable modem providers, and others warning that ISPs could be put out of business by FCC actions sought by Bells. “You can imagine the complexity that the commissioners have to deal with,” said TIA Vp-Govt. Relations Grant Seiffert, who participated in meeting Wed. with FCC Chmn. Powell and is seeking to have new Bell build-outs be exempt from unbundling. But for ISPs and groups representing them, issue isn’t complex. ISPs, with their quality of service and focus on local customers, “drove the dial-up market,” said Information Technology Assn. of America (ITAA) Counsel-Internet Div. Mark Uncapher, but FCC now is threatening to make that sector extinct.
Qualcomm shares rose Fri. after company said it expected to meet or exceed high end of previously outlined range of pro forma earnings per share of 21-23 cents for 3rd quarter. Qualcomm also said it expected to attain or beat high end of previous projections of MSM phone chip shipments. Equipment- maker said it also was experiencing “strong order input” for 4th quarter, which ends Sept. 29. Qualcomm cited increasing demand for CDMA products as factor behind revised outlook. It pointed to “rapid worldwide growth” of 3G CDMA2000 1x networks and GPS position location systems.
Dept. of Defense (DoD) unveiled details of how it wanted to develop advanced information-management technology with help of private sector researchers. Defense officials in recent months have expressed need for unique approaches in how to process and intelligently disseminate data over DoD’s evolving Global Information Grid. Defense Advanced Research Projects Agency (DARPA) last week issued formal call for proposals to develop “cognitive” devices and systems, or machines that “know what they are doing” and can streamline delivery of voice, video and data communications to warfighters and policymakers. DARPA, whose predecessor agency invented Internet, acknowledged there were major research challenges to overcome before cognitive IT processing became reality. However, once such processing were attained, it would “provide substantial new opportunities in all sectors, encompassing critical defense, industrial and commercial applications,” DARPA said.
ATI Technologies agreed to buy demodulation chip designer NxtWave Communications for $20 million cash. Deal is expected to close June 28. Acquisition will enable ATI to combine its back-end technologies with NxtWave’s front-end demodulator chips in targeting digital set-top boxes. ATI and NxtWave have long-standing ties and former’s technologies were regularly featured in NxtWave product demos. Unclear was whether NxtWave operations would move to ATI’s Markham, Ont., hq from N.J. and how acquisition might affect NxtWave’s preexisting agreement with Zenith to work on extended VSB standard for DTV. ATI and NxtWave officials weren’t available for comment.
Car buyers soon will face “host of new and confusing choices” on digital radio services, Allied Business Intelligence said in report. It cited technological demarcation between incompatible digital satellite radio services and digital audio broadcasting (DAB). As result, said analyst Frank Viquez, chip makers, and ultimately consumers, will face higher costs, at least until one or both can reach mass production quantities. Report also said digital radio promised to be extremely low-cost delivery service for telematics -- www.alliedworld.com.
BOSTON -- Intent of Senate Commerce Committee Chmn. Hollings (D-S.C.) to find govt. solution to copy protection online is “mind-boggling,” Intel executive said here Thurs., and “what has consumed my time the last few months has been that bill.” Addressing Connectivity 2002 conference, Intel Vp-Legal Affairs & Public Policy Donald Whiteside said he wanted content providers to thrive and have their intellectual property protected. Technology could aid that, he said, but fair use rights also had to be protected and federal govt. wasn’t suited to make technology decisions. Hollings’ bill (S-2048), which would have FCC mandate digital rights management (DRM) technology if industries couldn’t agree, “would say to Intel, ‘You are no longer able to decide what the best technology is to put in your chips.'” Meanwhile, 2 attorneys from Harvard said copyright and trademark holders were targeting online content aggressively, often sending cease-and-desist letters when there wasn’t clear case of copyright violation in hope of intimidating an individual lacking in legal resources.
Broadcom Corp. announced new combined cable TV set-top box/cable modem. Broadcom’s BCM7110 system-on-a-chip provides dedicated digital cable TV reception as well as DOCSIS (Data Over Cable System Interface Specification) 1.1 cable modem that enables interactive TV functions and broadband Internet access through same device. BCM7110 also incorporates personal video recorder (PVR) functionality and advanced graphics engine. In addition to cable modem/set-top box interfaces, set-top boxes based on BCM7110 can distribute voice, video and data throughout residence. It enables home networking through Ethernet, Wi-Fi wireless, other options. BCM7110 gateway box also can be used for voice-over-Internet- protocol (VoIP) 2nd voice line service.
WOW Digital TV is touting its DTV service as low-cost solution to lack of DTV receivers and as inexpensive way for DTV stations to use signal to provide more content and generate new revenue. Plan is to offer DTV receiver boxes to consumers for $199, which is $400-$600 cheaper than other boxes for displaying DVD-quality DTV signal on analog sets. Boxes also can display all 18 ATSC video formats on DTV- capable display device that lacks DTV tuner.