Is Wireless LAN gateway startup ReefEdge Inc. the latest victim of the 802.11 industry shakeout, or merely re-focusing again?

Earlier suggestions that the company may have shut its doors now look less likely, following a conversation today between ReefEdge's CEO David Goretski and Craig Mathias, principal at analyst and consulting firm the Farpoint Group.Goretski says ReefEdge isn’t shutting down, according to Mathias. "He was emphatic that this is just a re-focusing," Mathais told Unstrung. The analyst had no details yet on what form this change in focus could take.

The restructuring appears to have resulted in some layoffs already. No-one answered the phone at ReefEdge today, but at least two members of staff are no longer listed in the company’s phone directory.

Other analysts were unsurprised at the rumors of ReefEdge in trouble. From its inception, the four-year old New Jersey-based startup has seen stiff competition from other gateway vendors like Bluesocket Inc. (see Security Startups Thrive). More recently, the firm has faced a new wave of wireless LAN switch vendors crashing in on the WiFi security and network market (see WLAN Switch Shakeout Looms?).

This isn't the first time that ReefEdge has tweaked its wireless strategy. After bringing Goretski onboard and getting more VC funding late last year, the firm started selling itself as a multisite WLAN management play (see ReefEdge Gets Wedge, ReefEdge Joins CEO Shuffle , and ReefEdge Makes Switch ).

Should ReefEdge really be looking for a buyer for its IP, one name that may well be in the frame is Cisco Systems Inc. (Nasdaq: CSCO). The pair have already collaborated on a security bundle for multisite WLAN networks (see ReefEdge Integrates With Cisco).

A Cisco spokesman couldn't confirm or deny any such deal late on Tuesday night.

Previous vendor droputs in the 802.11 market have included the likes of AirFlow Networks Inc., Bermai, and Legra (see AirFlown?, Bermai Butts Out, and Exit Legra, Stage Right).

— Dan Jones, Site Editor, Unstrung