Vyyo Shuts Down Israel Operations, Lays Off More Than 702/01/2008 7:38 AM Eastern
Vyyo, which has been trying to peddle a proprietary spectrum-expansion technology to cable operators, shut down its research-and-development operations in Israel and laid off more than 70 employees there, the company said Friday.
In a statement, Vyyo CEO Wayne Davis said: “We are moving our international R&D, engineering and product-support functions to be closer to and better serve our expanding list of cable deployments, increase operational efficiencies and reduce expenses.”
The layoffs will leave Vyyo with about 60 employees and will continue to operate in the United States based in Norcross, Ga. Over time, the company said, it will build up U.S. engineering and customer-support resources “on a success-driven basis.”
News of the layoffs and closure of the facility near Tel Aviv was reported Thursday by Israeli newspaper Globes.
In July 2007, Vyyo laid off 23 employees. Last year founder Davidi Gilo stepped aside as chief executive officer, and the company hired Davis, formerly chief technology officer of Charter Communications, as CEO.
The company has struggled to get traction for its UltraBand “spectrum-overlay” system, which is supposed to deliver up to 3 Gigahertz of spectrum in a coaxial cable network.
Vyyo reported a $8.7 million net loss on sales of $2.6 million for the quarter ended Sept. 30, 2007. Davis, on a conference call with Wall Street analysts discussing the results, said Vyyo was “close” to signing deals with two large cable operators for the UltraBand system and its T1-emulation products.
Vyyo is scheduled to announce results for the quarter ended Dec. 31 on Monday, Feb. 4.