Home Director, the once high-flying home networking startup, reported a drop in income as well as a cut in losses for 2002.

Home Director, which started as an IBM spin-off in RTP and is now based in Livermore, CA, still maintains an office in RTP.

The company had revenues of $10.4 million in 2002, down from $13.2 million in 2001.

Home Director went through a reverse merger with Networld, Inc. and is now traded over the counter under the symbol HMDR.OB.

The company cut its losses to $2 million from $30.4 million in 2001. The losses were reduced by cutting the workforce to 77 from 267; restructuring debt; and cutting research and development (88 percent), sales and marketing (60 percent) and general administrative expenses (41 percent).

Home Director equipment has been installed in 45,000 homes.

Home Director: www.homedirector.com