Franklin Telecom Reports Net Loss of $1.8 Million

Franklin Telecom in Westlake Village reports a net loss of $1.8 million for the quarter that ended Dec. 31, compared with a loss of $1.3 million a year earlier.

The company also reported its sales were down to $886,000 for the quarter, compared with a drop of $354,000 for the same period in 1998.

On a sequential basis, sales were up 14% above the quarter that ended Sept. 30. Most of the sales increase is attributed to the ramp-up of a flat-rate telephone service offered by Franklin’s subsidiary, FNet Corp.

“FNet [is continuing] a rapid build-out of infrastructure, which will allow the company to accommodate a waiting list of additional customers,” said John Field, FNet’s president. “Coupled with an aggressive campaign to sign up distributors for our services, this build-out will generate substantial growth for the current quarter.”

Phil Ericson, Franklin Telecom’s chief operating officer, said that despite a slowing of hardware sales during the past two quarters, the company is experiencing a modest rebound this quarter.

Franklin Telecom designs hardware and software communications devices.