o2Wireless, a probvider of outsourcing services for wireless telecommunications firms, reported net losses increased for the second quarter to $15.2 million compared to $4.1 million during the second quarter the year before.
Revenues also decreased, dropping 57 percent to $10.8 million and were down 37 percent for 2002 to $33.4 million.
The company says losses are due to an overall decline in the build out of new networks and because several networking equipment manufacturers that are customers of o2Wireless have significantly reduced spending this year.
The negative financial outlook caused Israel-based Baran Group, a company that provides negineering services across the communications, biotechnology and pharmaceutical industries, to inform o2Wireless that it may back out of its proposed merger with the company.
Baran says it will conduct a review of the o2Wireless’ ability to move forward as a going concern, and that if Baran decides to go through with it the closing price will be reduced, according to a statement released by o2Wireless. Company officials were not immediately available for comment.