Hybrid on brink of bankruptcy

Badly wounded when lead customer Sprint stopped deploying its first generation fixed broadband wireless technology, Hybrid Networks is now floundering financially thanks to slow-moving international markets.

Hybrid announced fourth-quarter net sales that fell to $7.6 million compared to $12.9 million in the similar quarter a year ago and reported its net loss had been reduced to about $347,000 for the fourth quarter from $5.6 million a year ago. Year-end net sales were $27.9 million, compared with $22.8 million a year ago. Twelve-month net loss was cut to $10.7 million from $37.2 million in the prior year.

Because “international opportunities did not develop as rapidly as we had anticipated,” Hybrid does “not foresee sufficient revenues to meet our operating expenses,” said President-CEO Michael Greenbaum. Hybrid had been evaluating a sale or merger and, if such cannot be arranged, it “may be forced to seek protection under the federal bankruptcy laws.”

Additionally, Hybrid eliminated nine positions, or about 18% of its work force, leaving 41 employees. Scott McDonald, executive vice president and CFO left the company, with Greenbaum assuming CFO responsibilities.

--Jim Barthold, senior editor