I've been monitoring Worldgate Communications
, makers of the cool looking Ojo videophone for the past several days. I received word that their service was down for a few days and I attempted to reach them, but got a general mailbox. I didn't leave a message, but instead waited to see how this would pan out.
Well, today, I learned that Worldgate is currently in a dispute with its largest customer over the payment of significant monies which the company believes are owed to it.
A Form 8-K was filed
by Worldgate Communications claiming that its largest company has refused to pay. The 8-K states that the customer's refusal to pay such monies has contributed to a shortfall in the operating cash available to the Company to continue operations.
Accordingly, on January 30, 2008, the Company shut down its operations as a first step to winding down its business, which will occur if the Company is not able to secure payment of the monies believed to be owed and/or new financing. The Company continues to explore potential financing opportunities and is also pursuing legal recourse against the customer. Thus, bankruptcy may be coming shortly, which would be another black eye for the VoIP industry after Sunrocket ceased operations
would intend to resume operations if it can obtain financing or payment of the monies believed to be owed in a timely manner. Without such financing or the payment of monies believed to be owed, however, the Company will continue its plan to wind down the business.
It's too bad if Worldgate ceases, since this is one of the coolest looking video phones I've seen. Be a shame if these ended up in a landfill. I actually have a couple Ojos in the labs I've been meaning to test. I hooked up one and if I recall it has SIP settings, so in theory, someone like Packet8 could take over and provide service to existing Ojo customers. Packet8 is probably best suited for this, since they offer their own cool videophone
Thanks to Sal Costello for the tip