WASHINGTON-Sprint Nextel Corp. terminated its contract with Hewlett-Packard Co., according to a Securities and Exchange Commission filing by 724 Solutions Inc. Tuesday. 724 Solutions earlier this week announced HP had cancelled 742 Solutions’ subcontract for its access gateway solution deployment with Sprint.
724 Solutions in the filing said its X-treme Mobility gateway product was terminated because Sprint PCS, which had been buying the product through HP, terminated its agreement with HP.
724 Solutions said it received notice from HP Sept. 30 that the termination of the agreement takes effect Oct. 31, and it will reduce its revenue from HP by as much as $500,000 per month. The company’s stock value has since dropped by about 11.1 percent to $3.67 per share on the Nasdaq stock exchange.
As of press time, HP had not returned phone calls requesting comments on the agreement termination, and 724 Solutions declined to comment.
