Metricom Announces Signing of Southern California Edison Agreement
LOS GATOS, Calif. — October 20, 1992 — Metricom Inc. (NASDAQ:MCOM) announced that it has signed an agreement with Southern California Edison (Edison).
The agreement, which establishes the framework for a long term commercial relationship, includes R&D projects planned to be undertaken in 1992 and 1993 totalling $2.1M, along with commercial product orders totalling $1.2M for demonstration purposes.
Robert Dilworth, president and chief executive officer of Metricom, stated: "We are very pleased to announce the successful conclusion of the negotiations with Edison. Particularly gratifying is the first order of Metricom communications systems for a demonstration of voltage control, a potential source of significant energy savings for the nation's leading utilities. This demonstration is a prerequisite for possible large scale commercial implementation of Metricom's systems by Edison."
"The utility industry," Dilworth continued, "is painstakingly deliberate and careful in its adoption of new technology. As a result, we expect revenues in 1992 and 1993 to be substantially lower than previously anticipated and achievement of profitability delayed. Despite the extensive delays, we are pleased with the increasing acceptance of Metricom technology by leading utilities across the country and remain optimistic that significant purchases of Metricom communications systems will result once the lengthy research and testing process has been completed."
While the electric utility market remains a primary focus, Metricom continues to address other markets for its communications equipment and to invest in the development of products for those markets. Among the new products being developed by Metricom are:
– Improved radios which operate at a radio frequency data rate of 75 kilobits per second and provide effective data rates 10 times that of comparable wireless data networks like ARDIS and RAM Mobile Data.
– Portable radio-modems which enable laptop computers to use wireless communications to connect into broader wired networks.
– Proprietary wireless networks over which portable computers may communicate.
Metricom is planning to conduct alpha tests of these new products at several major potential customer locations early next year.
Using the same fundamental technology developed for utility applications, as well as for these new products, non-utility markets are being penetrated by Metricom. Examples include:
– Entering into an OEM agreement with Nova-Net Inc. of Englewood, Colo., for the seamless integration of Metricom's spread spectrum radios into Nova-Net's current offering of satellite communication services. Typical applications include the monitoring of oilfields and pipelines.
– Providing a major railroad and a railroad communication equipment supplier with radio products for use in locating trains and determining signal and switch status.
– Currently, Metricom products are being specified in an RFQ for communication equipment to be used in a waste water treatment system for a suburban midwestern county.
Dilworth concluded, "Metricom is making major investments in initiatives focused on utility, non-utility and wireless computer networking market opportunities. These investments will create significant future growth and profit potential for Metricom."
Metricom is a leader is digital wireless data communications networking technology. The company develops, manufactures and markets proprietary products that permit installation and operation of private, license-free, regional data communications networks. The company's initial product is UtiliNet(TM), a data communications network designed for the electric utility industry. UtiliNet addresses the utility industry's need for an advanced communications and control system to support distribution automation, demand-side management and customer service improvements.
CONTACT:
Metricom Inc.
William Swain, 408/399-8200