Hybrid Networks Cuts Its MMDS Signal

By Karen Brown, Broadband Week
from BroadbandWeek Direct - March 29, 2002

Times have been tough for MMDS wireless providers, and the latest casualty appears to be Hybrid Networks Inc.

The San Jose, Calif.-based fixed broadband wireless systems provider announced today it is folding up after failing to find a buyout partner. It will cut about 33 its remaining 41 employees as it closes out accounts.

Expected revenues for the first quarter 2002 were not expected to top a paltry $700,000, according to the company. By the time it pays out employees and settles other expenses, Hybrid will have cash and accounts of less than $1 million.

That doesn't come close to meeting the company's outstanding debt, consisting of $5.5 million in convertible notes due April 30. That means there won't be assets left to distribute to stockholders after creditor claims have been settled.

In the Internet heyday, Hybrid Networks offered systems for two-way high-speed data and voice services using fixed wireless technologies. But MMDS technology went into an economic tailspin in 2001, particularly after Sprint Corp. - which owned 30 percent of Hybrid - announced it was shelving its ION broadband fixed wireless offering. Hybrid tried to refocus its attention on the international marketplace, but that market did not provide any economic shelter.