Sierra Wireless, Inc. has announced plans to exit its Voq Professional Phone initiative and that it is shifting some Voq resources to its core PC Card and Embedded Modules business.
"These actions are designed to focus the company on the core areas of our business where we have extensive experience and a well established market position. We believe that both the PC Card and Embedded Module markets represent significant growth opportunities with the highest potential returns in our portfolio. Our goal is to ensure that we have a strong, sustainable leadership position in these areas," said David Sutcliffe, President and CEO of Sierra Wireless. "We have enjoyed limited success to date on the Voq Professional Phone and have concluded that continuing to proceed with Voq is no longer the best use of our resources, given our other opportunities. We will now seek the most effective exit, whether by divestiture or by termination of the initiative."
Voq assets and obligations, including inventory, equipment, licenses, patents, trademarks and contracts, total approximately US$15 million. Sierra Wireless employs 319 people, of which approximately 55 have been working directly on the Voq product across various functions in the company.
About 15 of these people will be transferred to programs in the core business, while others will remain on Voq during the Voq exit process. Approximately 99% of the company's revenue is being generated by the PC Card, Embedded Module and Rugged Mobile product lines.