VelocityHSI Slashes Half Its Work force, Restructures Biz Plan

WALNUT CREEK, CA-Locally-based VelocityHSI, a provider of high-speed Internet services to the multifamily apartment industry, has revamped its business plan and slashed half its workforce. Saying it has modified its business plans because of adverse changes in the market for its product and its failure to secure an additional round of anticipated financing, the company says it will stop efforts to expand service to new apartment properties until it can secure more funding.

In the meantime, VelocityHSI, whose shares fell 72% to seven cents a share Friday, will continue to serve existing clients and continue to increase the number of subscribers at the apartment properties where they are currently available. “These reductions are difficult for everyone,” says Stephen Carlson, president and CEO of the company. “It is imperative that we preserve our cash resources, however, it is equally important that we continue to provide the highest quality service to our subscribers while we explore alternative courses of action.”