A day after UAL Corp’s United Airlines announced legal action over the GEC in-flight entertainment systems it ordered (CI No 2,890) comes news that GEC Plessey Telecommunications Ltd is in deep trouble with Milford, Connecticut-based Executone Information Systems Inc. Executone says it has told GPT Video Systems Ltd that it will no longer distribute its videoconferencing equipment. It has already sent GPT Video Systems notice of default with intention to terminate the distribution arrangement and says GPT’s inability to deliver a properly functioning 700 series product according to the original schedule has forced Executone to absorb expenses in 1995 and early 1996 that the company is no longer willing to absorb. Executone will be reviewing its alternatives to seek recovery of the expenses from GPT. Executone also says that while it was essentially on plan for new orders for the first quarter, revenue for the quarter is now expected to be short of expectations primarily due to later-than-planned signing of orders in the direct sales telephony group.
