Sources inform "Globes" that Israel start-up OnePath Networks is is firing half its workforce. The company is expected to appoint a new CEO today.
The company board of directors, which met this afternoon to discuss the company's future, is expected to appoint VP marketing Eric Guth as CEO in place of company founder Howard Loboda, whose future in the company is unclear.
OnePath is conducting its third round of lay-offs. The company fired 20 employees in mid-2001, after terminating its HomePath product line, due to insufficient sales. 50 employees were laid off in April 2001.
At that time, OnePath announced the signing of an agreement with NWS, a US provider of services to multi-dwelling unit residences, to deploy OnePath's iPath product in a number of US and Canadian cities.
The multi-year agreement is estimated to be worth millions of dollars per year. Sources close to the company noted that the agreements already signed yielded the company $7 million in revenue last year, and the company expects similar revenue this year.
No response from OnePath to the report was available.
Loboda founded OnePath in 1993 under the name Foxcom. The company's cellular activity was spun off in 1998 as a company named Foxcom Wireless, and the original company later changed its name to OnePath.
The company raised $40 million in May 2000. Investors included JP Morgan Chase & Co., CIBC Oppenheimer, Genesis Partners, Apax Partners, and Israel Seed Partners.
Other investors include AIG Orion, Eurofund, Patricof and Co. Ventures, and Aurum-SBC Investments.
Published by Globes [online] - www.globes.co.il - on September 2, 2002