A big loss in the first quarter for the Shiva Corporation has coincided with the departure of its chief financial officer, Cynthia Deysher.
CEO Frank Ingari, said: ?Cynthia made significant contributions to the growth of the company. We wish her well.? In her absence, VP and corporate controller Larry Whitman, will act as the company?s finance officer. At the same time, Shiva announced a close relationship with Nortel.
Shiva will take financial action to redress a drop in sales of its Lan Rover remote access products including what it described as ?substantial inventory writedowns? of v34 modem cards, price cutting and a drop in funding for its second quarter promotional activities.
It is fighting a drop in its first quarter revenues of between 15-25 per cent from its last quarter and admitted it will make a ?substantial operating loss? in its first quarter, to be announced on 17 April.
Ingari said: ?We will be more aggressive in our marketing of the Lan Rover. In the Access Switch business, the company plans a rapid transition to 56K technology and will issue a significant new software release.?
To help the company recover from its first quarter losses, Ingari said that Shiva had struck a mutually exclusive strategic relationship with Nortel.
The deal with Nortel will last for three years and gives funding for Shiva?s Service Provider Group (SPG) for technical sales and support. The SPG will work together with a number of different Nortel divisions and partners while Nortel has undertaken to give Shiva minimum quarterly royalty payments this year as well as extra funds for manufacturing rights, support and R&D.
Klaus Buechner, group VP at Nortel, said: ?Our new relationship with Shiva allows us to serve our customers better.?
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