Aether Systems Inc is pulling out of the wireless and mobile data business after burning a huge pile of money in a venture that brought little but a string of losses.
The company plans to sell its transportation division to an affiliate of Platinum Equity for $25m in cash, and said it has received initial indications of interest from companies interested in buying its remaining mobile business, the mobile government division.
Last December, Owing Mills, Maryland-based Aether agreed to offload its enterprise mobile middleware division to TeleCommunications Systems Inc for $19m in cash. The company plans a new future managing a leveraged portfolio of mortgage-backed securities.
Aether’s shares, which hit $315 at the height of the dot-com boom, have now slumped to $3.29. In 2003, the company made a loss of $49.5m on revenue of $55.5m.