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Wireless Datron says wireless antenna contract still valid

VISTA , Datron Systems Inc. still has a valid $3 million contract to build antennas for a halted airline Internet service, officials here said early this month.

The company issued its statement April 5, one day after its client, Milwaukee-based Rockwell International Corp., said it would stop investing in the In-Flight Network.

The market for the product was slow in developing, said a Rockwell statement.

Rockwell officials said April 4 their company will take an after-tax charge of approximately $16 million in the quarter ended March 31, to write off inventory related to the In-Flight Network.

Rockwell’s statement spoke of eliminating previously planned In-Flight Network spending in its second half, which began April 1.

In-Flight Network is a joint venture between Rockwell and Sydney, Australia-based News Corp. Ltd.

Datron developed the antennas and associated systems to communicate with satellites and was to begin delivery this spring.

So what becomes of the antennas?

Rockwell may halt the Datron contract under termination provisions “that call for recovery of all work performed to date of termination,” David A. Derby, Datron’s chairman, president and CEO, said in a statement.

Since much of the work is done, the Datron statement said, Rockwell might opt to continue the work. Or it might want to renegotiate.

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