TEL AVIV, Israel—Wireless streaming media company Emblaze Systems Ltd. released its financial results for last year, showing net losses of $29 million and no relief in sight for at least the next year.
“2001 will be remembered as a year of significant global economic downturn that has greatly impacted the telecommunication sector, to the point of causing major bankruptcies and unprecedented levels of uncertainty that have caused a freeze in operators’ capital expenditures,” said Eli Reifman, the company’s chief executive officer. “Regardless of these events, the level of activity is increasing.”
Reifman said more high-end mobile devices are being introduced and more carriers are testing multimedia services, which has created some optimism in the streaming media space. However, he said, Emblaze’s revenues will continue to be irregular for the next year.
Emblaze reported revenues of $23 million for 2001. In 2000, the company scored profits of $11.6 million on revenues of $30.7 million. The company said it has cash and cash equivalents of $350 million.
In a separate move to help its financial situation, Emblaze said it exercised its option to take a controlling stake in AlphaCell, which sells advanced electronics designs to wireless handset manufacturers.
Emblaze faces stiff competition in the streaming media arena from Apple Computer Inc. and its QuickTime multimedia player, Microsoft Corp. and its Windows Media Player, RealNetworks Inc. and its RealPlayer Mobile and PacketVideo Corp. and its wireless media player.
