Relm posts Memorex sale; seeks outsource services
Relm Wireless, West Melbourne, FL, has won an $850,000 order from Memorex for nine models of Uniden portables and mobiles, including 6,000 units.
“This is a substantial order for us, and good news in several respects,” said William P. Kelly, Relm’s chief financial officer.
“First, a large portion of the order will be accounted for in the first quarter. Second, from a cash flow perspective, the order is cash in advance. And third, we really hope that this is the beginning of a good, solid relationship that will pay dividends on the product front,” he said.
Kelly explained that Memorex is entering the “consumer” land mobile radio business. The Uniden purchase is intended to accelerate its entry.
“They want to address the ‘Radio Shack’ type of customers, as opposed to the professional or industrial radio users,” Kelly explained. “Family Radio Service products fit one aspect of consumer land mobile radio, but probably not the only thing. Relm itself doesn’t intend to address that market.”
Kelly said that, beyond Relm’s sale of Uniden products to Memorex, Relm wants to contract Memorex for design, development and manufacturing services. He said that Relm wants to private label some of Memorex’s new products and to work with Memorex to design new products for his company’s Relm Communications, BK Radio and Uniden PRC brands.
Meanwhile, Relm’s relatively small development staff is focusing on digital product development as the company pursues external relationships for the development of analog products for business, industrial, public safety and government users.