Hybrid results positive, future cloudy

(Telephony) Just when things seemed to be going well for wireless broadband vendor Hybrid Networks, the market went haywire.

"At this time, there is a significant slowdown in the domestic fixed broadband wireless market as compared to September, when we provided investors with guidance for 2001," said Michael Greenbaum, Hybrid's president/CEO. "With the current market volatility, we believe it's appropriate to be cautious regarding our growth assumptions."

Thus, Hybrid's not predicting anything going into 2001 other than the fact that it is "aggressively pursuing international opportunities" to offset the U.S. slowdown, Greenbaum said.

Fourth-quarter results from last year and 2000 were a little easier to digest, Greenbaum said. Fourth quarter sales were up 396% and full-year sales increased 75%. The net loss for the quarter was $5.6 million, or 26 cents per share, compared to a net loss of $9.8 million, or 88 cents a share, in the same period a year earlier. For the year, Hybrid reported a net loss of $37.2 million, or $2.03 per share, compared to a net loss of $22.2 million, or $2.08 per share, in 1999.

On a more positive note, Greenbaum said the company signed an equity financing agreement with Paladin Group for up to $15 million to "continue our development of new products and enable us to broaden our sales efforts on a global basis."

That global marketplace could comprise up to two-thirds of Hybrid's business by 2004, Greenbaum said.

"Outside the United States, the countries are infrastructure poor, and fixed broadband wireless … is a very economical way to deliver services to people who are presently unreachable," he said.

In the U.S., Hybrid continues to be heavily dependent on its main customer, Sprint. While continuing to be positive about its relationship with Hybrid, Sprint has experienced a "change in philosophy which will cause Sprint to place heavy emphasis on installing customer premises equipment in the 14 markets that they have announced."

In total, Greenbaum continued to be confident that fixed broadband wireless is "a superior method of delivering service" and, as soon as the market's "cautious approach to capital expenses in the telecommunications segment" calms down." it will be possible to have a better view" of where business will go in 2001.