Wireless Data has tremendous potential..just ask Irwin Jacobs of Qualcomm...MCOM(paul allen+MCI=50% ownership) and AETH are my choices...........
AETH provides wireless data services and systems enabling people to use
wireless handheld devices for real-time data communications and transactions. We
offer a broad range of capabilities necessary to design, develop, sell and
support a full range of wireless data services. We can offer these capabilities
because of our engineering expertise, our wireless integration software and our
customer service and network operations center.
Our initial focus is on the financial services industry, including online
trading. We currently offer the Reuters MarketClip service for financial market
price quotes, alerts and information and TradeRunner, a real-time wireless
trading and financial information service offered to the online customers of
Discover Brokerage. We are developing similar services for other major financial
institutions, including Charles Schwab. We recently acquired Mobeo, Inc., a
provider of wireless foreign exchange information services, for a purchase price
of $11.7 million in cash and options to acquire shares of our common stock. The
Mobeo acquisition adds new services that complement our own, establishes our
relationship with additional financial institutions and significantly increases
our subscriber base. We are also targeting other industries, initially by
licensing our package of wireless messaging software and software development
tools known as Aether Intelligent Messaging, or AIM. Finally, we hold a 26%
interest in OpenSky, a company we recently formed with 3Com Corporation, which
will pursue the broader consumer and business mass market for wireless Internet
access, e-mail and Internet and other electronic transactions.
The market for wireless data applications is relatively undeveloped and has
been hindered by significant technological challenges, including incompatible
devices and networks, slow data speeds and uncertain security. We believe these
complexities have given us the opportunity to establish a position as an early
market leader in wireless data services.
We have all the resources necessary to provide our customers with complete
wireless data systems. We have a large, experienced development team, with 27
engineers who have worked an average of ten years in the wireless data field. We
have developed the AIM package of wireless messaging software and software
development tools, which serves as a bridge to integrate diverse corporate
in-house data systems with a wide variety of wireless carrier networks and end
user devices. We operate our own high-security network operations center, which
connects customer and other data to wireless networks, and maintain our own
customer service center. We have also cultivated close relationships with major
wireless network carriers, including AT&T Wireless Services, Bell Atlantic
Mobile and BellSouth Wireless Data and mobile equipment manufacturers, such as
3Com, Ericsson LM and Novatel Wireless, Inc.
Our strategy. Our strategy is to be the dominant provider of wireless data
services and systems by using our engineering expertise, our AIM package of
wireless messaging software and software development tools, our customer service
and network operations center and our other resources to offer businesses
complete systems for wireless data communications and transactions. We seek to
maximize recurring revenue initially by extending online trading and financial
information services to personal organizers, notebook computers, pagers and
mobile phones. Our strategy includes the key elements set forth below.
- Develop the market for existing and new products in the financial
services sector.
- Expand into new industries and international markets.
- Pursue mass-market opportunities, including wireless Internet access,
e-mail and Internet and other electronic transactions.
- Expand our customer base and strengthen the Aether brand through enhanced
sales and marketing efforts.
- Maintain and strengthen our strategic relationships with suppliers and
customers.
- Use the expertise we gain by providing engineering services to develop
new Aether products.
- Pursue selective acquisitions to expand our capabilities.
Our services. We develop and support systems for businesses that allow
their employees or customers to access information and conduct transactions
using wireless handheld devices. Our services currently include delivering real-
time wireless financial market information and trading capabilities to
individual investors and financial market professionals. We also license the AIM
package of wireless messaging software and development tools to software
manufacturers and other corporations seeking to add wireless data capabilities
and provide engineering services to businesses seeking to design, develop and
support wireless data systems.
Operating results. We had revenue of $1.4 million in 1996, $1.8 million in
1997, $1.5 million in 1998 and $787,000 in the first six months of 1999. We had
net losses of $417,000 in 1996, $2.7 million in 1997, $4.7 million in 1998 and
$4.3 million in the first six months of 1999. As of June 30, 1999, we had
cumulative losses of $12.2 million. On a pro forma basis, giving effect to the
Mobeo acquisition, we had revenue of $10.1 million in 1998 and $5.8 million in
the first six months of 1999, and we had net losses of $6.8 million in 1998 and
$5.2 million in the first six months of 1999.
Other information. Aether is presently organized as a Delaware limited
liability company known as Aether Systems LLC. Prior to the closing of this
offering, each member of the limited liability company will contribute its units
in the limited liability company to Aether Systems, Inc., a newly-formed
Delaware corporation, in exchange for two and one-half shares of our common
stock. Following this contribution, this limited liability company will merge
into Aether. Unless otherwise indicated, all information in this prospectus
gives effect to our conversion from a limited liability company to a corporation
through this contribution and merger. All references to "we," "us," "our" or
"Aether" in this prospectus mean Aether Systems, Inc. and its subsidiaries or
Aether Systems LLC and its subsidiaries if the reference is as of a time before
completion of the conversion. |
