Newport Stays Afloat
Well, the good news for the British vendor is that, following an Extraordinary General Meeting of investors held on August 22, it placed 200 million new shares at 3 pence each and raised new working capital of £6 million (US$12.2 million).
Newport needed the money. It was down to it last few hundred thousand pounds but has clearly persuaded some investors that there's a market for its SBC. In a London Stock Exchange document filed in late July the company noted that its board is "confident" of "increasing revenues commencing in the second half of this year."
It added: "The Company now has four signed agreements with major NEVs [network equipment vendors] and is in advanced negotiations regarding an agreement with one of the world's largest NEVs that is also a market leader in IMS solutions." (See Newport, UTStarcom Team, Ericsson Retains Newport Deal, and Newport Works With Nortel.)
The company has said these partnerships are helping to build a "pipeline" of opportunities -- but will they result in top-line revenues? The company's next trading statement, due in March next year, will answer that.
— Ray Le Maistre, International News Editor, Light Reading