CSI Wireless, a designer and manufacturer of advanced GPS products, reported a 59% increase in revenues for the first quarter ended March 31, yet saw a net loss of $9.2 million. The company also said it has made the strategic decision to focus its resources on its GPS product lines where it views itself as a market leader with significant competitive advantages and intellectual property.
During the first quarter, CSI began looking for a buyer for its telematics product line. The company also announced changes to senior management aimed at improving the performance of its Hemisphere GPS business. Hemisphere GPS revenue reached $15.5 million by the end of Q1.
“Senior management changes have been driven by the need to improve the performance of Hemisphere GPS following 2005 and early 2006 shortfalls, as well as by the need to right-size corporate overhead costs in light of our divestiture of the [Fixed Wireless Telephone] business,” said Michael Lang, chairman & interim CEO of CSI Wireless.
As part of the restructuring, the company accepted the resignation of Stephen Verhoeff, president, CEO and director of CSI. Michael Lang assumed the position of interim-CEO during the recruitment period for a replacement for Verhoeff. Cameron Olson, CFO, will be acting as interim president; Rick Heiniger will transition from president of Hemisphere GPS to vice-chairman of the board and will focus on special assignments such as strategic planning and direction for the Hemisphere GPS business.