IRVINE, Calif. (BRAIN) — Watteam, which has sold some of the least expensive power meter cranks on the market since 2014, announced Friday that it is suspending production of its latest-generation product line and looking for strategic partners that can make use of its technology.
"The current management decisions coming from Watteam's board of directors is to consider acquisition options and to search for the right strategic partners in order to establish positive cash flow and execute our vision. We are very confident with our technology, our cost-effective hardware and methods of integration," the company said in a statement emailed Friday. A Watteam representative has not yet responded to an inquiry from BRAIN.
Watteam's Powerbeat cranks have gone through three generations since their introduction at the 2014 Interbike show. The latest generation had prices as low as $259 for a meter that the user installed on an existing left crankarm. Its most expensive option provided left- and right-sided meters that could be easily swapped between two bikes; it retailed for $600. The company sold consumer direct, through bike shops and through online retailers.
"As of this week, Watteam decided to suspend its production and direct sales of the Powerbeat product line and to withhold pending orders," the company stated. "Although we are facing the peak of the retail season, the G3 is not at a standard we are confident to supply. With limited resources and production difficulties, this is the optimal moment to make this exciting change towards what we have always envisioned as the future and make it possible.
"We apologize for the inconvenience that this decision may cause to you, and we hope that our continued developments will bring you greater benefit in the future!"
The company said its mobile app will remain functional and it would continue to provide customer support and warranty. It also said the "several hundred" customers who have received G3 units can be confident of their quality.
"Going forward, Watteam is vigorously pursuing an individual or corporation that will obtain the current assets that have been obtained over seven years of industry knowledge, Big Data and technological advancements. In addition to the Smart Crank being one of the most accurate and advanced power meters, equipped with all the latest features, it will function as a 'One Stop Shop' for manufacturers and customers. Featuring a variety of industry solutions that will bring an end to many problems faced by the manufacturer and the end client.
"The outcome of having the most cost-effective hardware with a mature and stable algorithm is the Smart Crank. A mandatory bike component integrated into every bike, without additional costs to the end user."
Watteam's headquarters are in Irvine, California; its research and development facility is in Israel.
