Troubled telecommunications and data communications equipment manufacturing company Broadband Technologies Inc, has finally been bailed out of trouble by Lucent Technologies Inc, with a three year contract worth over $50m. The company has been in serious trouble since 1995, and has reported fourth quarter net losses of $6.1m on revenues down 70.4% at $2.3m. However, the outlook is now is looking more positive, with a jump in share price of 40% to $7.25 since the Lucent announcement last Friday, and it claims that it now has formulated a three point plan to get it out of trouble. Firstly with orders from Lucent for Broadband Technologies-built components of Lucent’s AnyMedia Access System and corresponding joint research and development and efforts; secondly it claims that it will keep on developing its own FLX-2500 ATM access equipment; and thirdly it says it will develop new broadband access products for the local loop. The company predicts that the extra revenue from Lucent and various cross licensing agreements will put it finances on a stable footing for the future. It’s got an uphill struggle though, with net losses for the Year of $39.8m, against $31.0m losses last time, on revenues down 35.1% at $15.0m.
