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http://www.canada.com/calgary/calgaryherald/news/business/st… Wi-Lan targeting `huge year` ahead Future lies in WiMax technology Tamara Gignac Calgary Herald Friday, April 02, 2004 If Sayed-Amr El-Hamamsy gets his way, an emerging wireless technology will not only shake up the computer industry, but usher in a promising new future for embattled Wi-Lan Inc. The Calgary-based company -- slimmed down and recapitalized -- is pinning its hopes on WiMax, a bigger, more powerful version of its distant cousin. The technology is able to beam Internet signals through digital radio at speeds similar to cable and DSL across distances of up to 50 kilometres. Wi-Lan is working with Intel, Nokia and Fujitsu to establish a recognizable WiMax standard, and hopes to be the first out of the gate with fixed wireless gear that would cut the cost of installing Internet connections in homes and offices. It`s a tall order, but El-Hamamsy remains steadfast in his belief Wi-Lan can deliver on its goals after a decade of false starts, market skepticism and jaw-dropping financial losses. "This is going to be a huge year in terms of making sure our projects achieve their targets. We`re laying down the foundation for success," said El-Hamamsy, who was promoted to chief executive of Wi-Lan in December after company founder Hatim Zaghloul relinquished the role to focus on corporate strategy. Wi-Lan, once a darling of Calgary`s technology industry, saw its fortunes erode with the collapse of the dot-com boom. Its share price, which peaked at more than $90 at the height of the Internet bubble, plunged below $1 in 2001. El-Hamamsy, a former manager with General Electric in the U.S., joined Wi-Lan that year as chief operating officer. "It was totally chaotic," he recalls. "We were in dire straits at the time and burning through cash like crazy." Faced with lower-then-expected sales -- and the prospect of running out of money -- the beleaguered firm cut its staff by more than half and slashed executive salaries. A satellite office in Santa Barbara, Calif., was shut down, and a number of projects shelved. Having weathered the storm, Wi-Lan expects to be profitable in 2004 and generate revenues of between $32 million and $37 million, significantly higher than the $26.8 million it reported last year. Among the largest markets for Wi-Lan`s technology are rural areas and developing countries that lack landline infrastructure, and where the cost of building a large telecom network is prohibitive. But El Hamamsy also points to traditional telephone and cable providers that use the technology to complement their existing broadband networks and deliver high-speed Internet services to outlying regions at a fraction of the cost. Electrical companies can enter the Internet service business by installing Wi-Lan`s wireless gear on transmission cables, as Vanta Energy is in Finland. "They already have an extensive customer list, so it`s pretty easy for them to do the marketing. Plus, they have utility poles, giving them a place to put the equipment without having to go out and acquire tower rights," he said. With Intel planning to release its first WiMax chips this year, analysts say the technology is poised to explode, with devices expected to appear in laptop computers within two years and mobile phones by 2007. Wi-Lan could gain a strong foothold in the market, given the fact it has developed a standard for transmitting radio signals that doesn`t require an unobstructed path, said Kevin Lo of Lightyear Capital. "Historically, Wi-Lan`s technology has been the best out there among the fixed wireless players. What they have always lacked is a strong marketing arm and industry clout," he said. Going forward, Wi-Lan is focused on laying the groundwork for major growth by boosting licensing revenues and pushing for the adoption of an industry WiMax standard. One thing is certain, said El-Hamamsy: Wi-Lan`s dark days are over. "Watching our stock go from $90 to 90 cents is a horrific experience and I don`t think we`ll ever see that again. What we will see is steady growth in our valuation based on concrete results," he said. Wi-Lan shares closed Thursday at $3.36, down a penny on the Toronto stock exchange. tgignac@theherald.canwest.com © The Calgary Herald 2004 |
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| aus der Diskussion: | Wi-LAN |
| Autor (Datum des Eintrages): | panik (05.04.04 16:57:09) |
| Beitrag: | 2 von 7 (ID:12658134) |
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