and TeleCo will insure the product while it is in transit.
Instead of using a third-party shipper (e.g., FedEx, UPS), CoAx has elected to use
its own logistics subsidiary, DeliveryAx,* to deliver the cable to TeleCo.
* CoAx acquired 100 percent ownership interest in DeliveryAx in the previous year.
DeliveryAx provides an array of shipping services to third-party customers outside the
cable industry. Only 2 percent of DeliveryAx’s shipping revenue is expected to be
derived from transactions with CoAx in the current year.