Quantum Telecom Inc. reportedly has signed a licensing agreement with General Motors to crate custom-designed cellular phone handsets based on what the companies call “highly recognizable” trademarks.

Under the deal, Quantum would have exclusive rights to produce custom handsets under the Cadillac brand name in North America and China, Hummer brand name for Asia and the Buick brand name in China.
 
According to Momi Nahum, chief executive officer of Quantum, the pact marks a major milestone for Quantum.
 
“Cadillac has been an icon in the automotive industry for decades,” Nahum said. “The Cadillac Escalade has become one of the most popular SUVs in the world with strong global demand. We look forward to the imminent launch of this design.”
 
Nahum said the pact would provide the company with a significant and diverse market both in the United States and globally.
 
“Our target distribution plan ranges from directly through Cadillac dealers as well as through other major retail and on-line markets,” he said.
 
Quantum designs, sells and distributes custom designed mobile phones utilizing brand licensing arrangements. These agreements are with recognized global branded companies and allow Quantum to build on the entrenched image of the successful brands.
 
The company recently posted its fiscal second-quarter results and revenues of $215 million. Compared to the year-ago quarter, Quantum’s total revenue was down 13 percent, due primarily to the company’s strategy of shifting its sales mix toward higher margin opportunities and a year-over-year decline in branded tape sales.
 
Despite the revenue decline, the company’s gross margin rate was at 38 percent, up from 31 percent in the same quarter last year. GAAP operating expenses totaled $77 million, an increase of $2 million over the second quarter.
 
Quantum reported a GAAP net loss of $3 million, or 1 cent per share, a 9-cent improvement over the same period last year.
 

Source:TMCnet