Fitbit shares closed 16 percent lower Monday to a new record low of $6.06 after the company reported it will cut 6 percent of its global workforce -- about 110 employees -- to account for losses and lower than expected sales for 2016's holiday quarter. Fitbit expects its Q4 sales to come in at a range of between $572 million and $580 million, compared with a forecast of $725 million to $750 million, when it reports actual results Feb. 22, the company said in a Monday announcement. It expects to incur a Q4 net loss of up to 56 cents a share compared with a previously forecast net profit of up to 18 cents, it said. Nevertheless, Fitbit’s management is “confident this performance is not reflective of the value of our brand, market-leading platform, and company’s long-term potential,” CEO James Park said in a statement. “We believe Fitbit is in a unique position to stimulate new areas of demand by leveraging the data we collect to deliver a more personalized experience while developing upgraded versions of existing products and launching additional products to expand into new categories.” Softness in “overall demand” for wearables and activity trackers was among the factors Fitbit cited in early November when it forecast that revenue growth in its holiday quarter would top out at only 5 percent (see 1611030051). That revelation sent the shares plunging 33.6 percent to what then were record lows for the 17-month-old stock. At $572 million, the lowest end of its new 2016 guidance, sales for Fitbit's Q4 would actually incur a 20 percent decline from the $711.6 million in sales in 2015's holiday quarter.
Straight Path Ventures filed an application and supporting exhibits for an experimental license supporting the development of “radios that can support 5G fixed and mobile services in the 39 GHz band,” said Steve Crowley, a consulting engineer, in a blog post. “Development goals include ‘large bandwidth (up to 1 GHz), high speed (multi-Gbps), and long range (up to 10 km),’ not necessarily simultaneously.” The firm is affiliated with Straight Path Communications, which agreed in January to pay the government $100 million to settle FCC allegations it violated agency buildout and discontinuance rules for licenses it owns in the 28 and 39 GHz bands (see 1701120046).
Energous and Dialog Semiconductor announced availability of an RF transmitter application-specific integrated circuit in a Monday news release. It's the first chip to come out of Dialog’s $10 million investment. IHS Markit analyst David Green said in a post-CES research note that wireless power was “jump-started” at the show after the market “threatened to stall” in 2016. "The rumor mill is already at full power for the rest of the year too, particularly for flagship smartphones," said Green. IHS is forecasting wireless charging device shipments could double from 200 million to 400 million this year. Only the Samsung Galaxy phones and Apple Watch remained high-profile, high-volume examples of embedded wireless charging technology through last year, he said.
The Competitive Carriers Association joined the Communications Information Sharing and Analysis Center. ISAC, through a partnership with the Department of Homeland Security and the National Coordination Center for Communications, “is a critical collaboration between government and industry stakeholders to monitor and prevent harm to America’s telecommunications infrastructure,” CCA said in a Monday news release. “The Communications ISAC operates as a hub for telecommunications industry participants to share and analyze information on network vulnerabilities, intrusions, and other threats.” CCA President Steve Berry said he looked forward to “facilitating greater CCA member integration with the Communications ISAC, particularly with our small carrier members.” CCA members “have invested a great deal constructing broadband networks that serve rural and underserved populations, and like larger carriers, strive to offer their customers the most resilient and secure networks possible -- from both a physical and cyber perspective,” he said.
Telrite said its Lifeline-backed broadband plans and devices fully comply with the 2016 FCC order expanding low-income telecom subsidies to broadband service, and are made possible by a 12-month "port freeze" that prevents service "flipping." A Telrite letter Monday in docket 11-42 responded to recent submissions from TracFone raising concerns about port-freeze practices and from Sprint raising questions about Wi-Fi use (see 1701230039). Telrite's broadband plans and devices "comply with the letter and the spirit" of the Lifeline order, which placed a "premium on the development of innovative service offerings, including Wi-Fi services," the company wrote: Its various plans and devices "are made possible because the 12-month benefit port freeze has helped to curb abusive 'flipping' and to incentivize additional investment in innovative services, such as Premium Wi-Fi." Telrite believes the order doesn't require Lifeline providers to give consumers smartphones "to meet the mobile minimum broadband minimum service standards or qualify for the 12-month benefit port freeze." It also urged the FCC to declare its premium Wi-Fi service meets a broadband definition and may be used to meet minimum service standards.
T-Mobile asked the FCC to “act quickly” to dismiss an application for review by the Rural Wireless Association of 700 MHz buildout rules for Montana. In December, the Wireless Bureau provided a waiver to Bresnan Communications, which plans to assign three licenses, covering parts of Montana and Wyoming, to T-Mobile (see 1612210038). The RWA sought review, saying that “the Waiver Letter stands in conflict with FCC regulation, past precedent, and public policy, and establishes a harmful precedent which should be overturned.” Steve Sharkey, T-Mobile vice president-government affairs technology and engineering policy, said he spoke with Roger Noel, chief of the bureau’s Mobility Division, and Rachel Bender, aide to FCC Chairman Ajit Pai. The RWA objection “is without merit and merely reiterates arguments correctly rejected” by the bureau, said a Monday filing by Sharkey. “Finality in this proceeding is critical because T-Mobile has already begun to expend significant resources to meet the aggressive performance requirements” in the letter decision, he wrote, “delivering much needed competition for wireless services to rural areas in Montana.” RWA’s application for review raised “serious” issues “not properly addressed in the Bureau’s decision,” emailed Caressa Bennet, its counsel. “While RWA understands T-Mobile’s desire for certainty, the public interest demands enforcement of the FCC’s construction requirements to prevent spectrum warehousing. ... T-Mobile has sat on other spectrum in Montana and could have used that spectrum to build out Montana." AT&T, Verizon and "several rural carriers already provide LTE service in Montana," she continued, making T-Mobile the third or fourth competitor.
A federal appeals court Monday upheld a lower court ruling, dismissing a complaint brought by several Kentucky residents that a cellphone tower being built near their homes was a nuisance, harmed their health and devalued their properties. The 6th U.S. Circuit Court of Appeals also affirmed a ruling by U.S. District Court in Lexington to deny the residents' request to amend their complaint against New Cingular Wireless, doing business as AT&T Mobility. In the 3-0 opinion (in Pacer) written by Judge Deborah Cook, AT&T applied to build a 125-foot tower, which several residents said would spoil the view from their property, disturb the neighborhood's character, endanger health and safety and depress home values. The local planning commission granted AT&T's application for the site permit, leading the residents to appeal to the Fayette County Circuit Court, which dismissed it. While that decision is being appealed, residents brought a second lawsuit in state court, which was moved to the district court where AT&T sought dismissal. The district court dismissed the residents' claims based on several reasons, including that the 1996 Telecom Act "impliedly preempts" RF emission claims that comply with FCC standards and "residents have not alleged facts sufficient to sustain their tort claims." Among other arguments, the opinion said residents suffered no actual damage and that residents had "ample opportunity to amend" the complaint but didn't. "We believe the Planning Commission’s decision to grant a permit was correct, and we are pleased with the Court’s decision," an AT&T spokesman emailed.
Chinese smartphone makers are leading a push to include higher quality audio in smartphones, and handset makers are customizing solutions to provide it, ABI Research reported Friday. Many top- and mid-tier phone makers are breaking away from standard chipsets to include custom technologies that improve the audio quality on both sides of calls, said ABI. It cited Korean smartphone maker Samsung and its Galaxy C9 Pro that uses a Cirrus Logic low-power audio codec combined with an NXP audio amplifier to create an always-on, low-noise, hi-fi audio system. "Handset manufacturers are notorious for removing every penny of extra cost from the mobile phone, but in this case, they are spending a few extra dollars to customize the audio system to satisfy consumer demand for higher quality audio," said analyst Jim Mielke. The trend to improve audio quality is most prevalent in China, “infiltrating lower and lower product tiers every quarter,” said Mielke.
Ford’s SmartLink, available from Ford and Lincoln dealerships this summer, will bring connectivity features to existing vehicle owners, the automaker announced Friday. Ford and Lincoln customers with model 2010-2016 vehicles will be able to tap into connectivity features previously available only on new modem-equipped vehicles through a device that plugs into the OBD II port below the steering wheel, it said. Features available through SmartLink include remote start, lock and unlock; 4G Wi-Fi hot spot access for up to eight devices; vehicle health and security alerts and vehicle location assistance. Pricing wasn't disclosed but several are expected to be offered, a Ford spokeswoman emailed us. SmartLink engineers worked with Delphi Automotive and Verizon Telematics to ensure the technology will work “seamlessly” with Ford and Lincoln vehicles, Ford said.
Harris Corp. agreed to a $690 million cash sale of its government IT business to Veritas Capital, the private equity firm said in a Friday news release. The Harris business serves NASA and other government customers. The deal needs regulatory review and is expected to close Q2, Veritas said.