More trouble at i-mate

Financial trouble continues to haunt i-mate. Last week, i-mate announced its Preliminary Results for the year ended 31st March 2008 and the picture is not pretty. Revenues dropped 69 percent from USD$195 million the year before to USD$61 million and the company recorded a loss of USD$61.6 million. According to Bernard Cragg, i-mate’s Chairman, It is difficult to express how painful this year has been for the company and for all of us. About everything that can happen to a young high-tech company did.

i-mate blames a number of reasons for its poor results, including poor quality control by some of its suppliers, shipment delays, litigation with a former service supplier, and a downturn in the global economy. Unused Windows Mobile licenses also ended up costing the company USD$7 million after it pre-ordered more licenses than it managed to sell.

The company promises that it is working on future devices and recognizes that execution will be the key to turning things around. CEO Jim Morrison also reveals that the company is considering withdrawing from the U.S. market due to the number of companies that demand licensing agreements based on unsubstantiated patent awards to companies whose whole business is chasing companies they think operate in the USA.

Do you think that i-mate will survive another year?

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