& cplSiteName &

Spirent Loses on Wireless Unit Sale

Ray Le Maistre
7/5/2007
50%
50%

Spirent Communications plc has sold wireless video test business SwissQual Holding AG for a fraction of the price it paid for the business just 18 months ago, the company announced today. (See Spirent Sells Unit.)

In January 2006 Spirent bought SwissQual for 62.5 million Swiss francs ($51.3 million), with additional payments of up to CHF28 million ($23 million) to be made if certain financial and technical milestones were achieved. Now, though, Spirent has offloaded the business to unidentified "private investors" for just $3 million in cash. (See Spirent Buys Wireless Test Firm.)

While Spirent noted last January that SwissQual was "a profitable and fast growing business" that was expected to enhance earnings in 2006, it now says the wireless test unit "has been operating unprofitably, with losses continuing through the first half of 2007." (See Spirent to Buy SwissQual.)

Spirent reported goodwill impairments against the SwissQual business in its 2006 financial report, and noted today that it would "record a loss on disposal" of about £5.5 million ($7.5 million) this year as a result of the divestment.

The sale is part of new chairman Edward Bramson's strategy to boost Spirent's profits. Bramson, who took control of the company late last year and ousted the CEO, is already implementing a new restructuring program, and is currently formulating a "Strategic Review" that focuses on "balance sheet structure and other matters." (See Spirent Makes Deeper Cuts , Spirent Suffers Boardroom Coup , and Spirent Spikes CEO .)

In a prepared statement, Bramson noted: "The sale of SwissQual releases resources for use in Spirent's core businesses and it provides continuity for the customers and employees of SwissQual." (See Siemens Tests Mobile Quality and O2 Tests With Spirent.)

Spirent executives were unavailable for comment, so it's unclear whether the sale means the test vendor no longer has mobile video quality test capabilities, or whether the APEX Wireless Multimedia Analyzer product announced in February this year was developed separately and is not part of the sale. (See Spirent Evaluates Mobile Video.)

Spirent is the subject of much speculation in the test sector, with many believing the new board is preparing the company for a sale, though the company's president and COO, Rob Piconi, told Light Reading recently that isn't the strategy. (See Spirent: We're Not Prepping for Sale.)

Spirent's share price edged up 1.6 percent today to 77.5 pence on the London Stock Exchange , just more than double the share price (37 pence) a year ago.

— Ray Le Maistre, International News Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
chips_ahoy
50%
50%
chips_ahoy,
User Rank: Light Beer
12/5/2012 | 3:05:42 PM
re: Spirent Loses on Wireless Unit Sale
This seems pretty much like lying to me:

While Spirent noted last January that SwissQual was "a profitable and fast growing business" that was expected to enhance earnings in 2006, it now says the wireless test unit "has been operating unprofitably, with losses continuing through the first half of 2007."

Whoever issued the AOK quote should be prosecuted and spend some time in jail. I'm not saying that we should go as far as the Chinese and start executing people for cheating others....
http://www.washingtonpost.com/...

This is frigging ridiculous though...

Although the scope and scale are smaller, it would not be unfair if liars at Spirent ended up just like their brethren at Enron....
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 28, 1:00PM EDT
Gigabit 101
Will Barkis, Senior Technology Analyst, Orange
UPCOMING COURSE SCHEDULE
Friday, September 30, 1:00PM EDT
Gigabit & the Great Migration
Robert Howald, Vice President, Network Architecture, Comcast
Wednesday, October 5, 1:00PM EDT
Gigabit & Smart Cities
Joe Kochan, COO & Co-Founder, US Ignite
Friday, October 7, 1:00PM EDT
Gigabit & DOCSIS 3.1
Ty Pearman, Director, Access Architecture, Comcast
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Documentaries
MEC Congress: The Key Takeaways

9|22|16   |   03:25   |   (3) comments


Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
Wagner’s Ring
Time to Shut Up About 'Dumb Pipes'

9|22|16   |     |   (12) comments


Service providers can't compete with OTT players. It just isn't in their DNA. Instead, service providers need to embrace what they're good at -- providing reliable, secure connectivity.
Wagner’s Ring
Keeping Your Tech Career Going After 50

9|21|16   |     |   (13) comments


How do you keep your career moving forward when you're past the half-century mark?
LRTV Interviews
Peering Into the Digital Future

9|20|16   |   04:25   |   (0) comments


Nick Thomas, practice leader of digital media at Ovum, talks about how digital transformation in the technology, media and telecom sectors will enable the development of a new range of applications and services for enterprises and consumers and how the upcoming Digital Futures event in London will examine ...
LRTV Custom TV
Napatech Tackles NFV's Major Challenge

9|7|16   |   08:42   |   (0) comments


One of the main challenges for network operators introducing NFV is to combine performance and flexibility in a cost-effective way, but there is a solution, explains Napatech's Dan Joe Barry.
LRTV Custom TV
Huawei Optical Innovation 2016

9|6|16   |     |   (0) comments


Highlights of the 2016 Huawei Optical Innovation forum.
LRTV Huawei Video Resource Center
Are You Ready for Huawei Connect 2016?

8|31|16   |     |   (0) comments


Join us for an exclusive sneak peak of Huawei Connect, an integrated conference for the global ICT ecosystem taking place in Shanghai.
Between the CEOs
CEO Chat: UXP's Gemini Waghmare

8|26|16   |     |   (0) comments


Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
LRTV Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Keeping Your Tech Career Going After 50
Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/21/2016
Time to Shut Up About 'Dumb Pipes'
Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/22/2016
Comcast Will Go Wireless in 2017
Mari Silbey, Senior Editor, Cable/Video, 9/20/2016
Sprint CEO: We'll Lease Spectrum as Soon as Possible
Dan Jones, Mobile Editor, 9/20/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
You Thought Your Customer Service Was Unreliable... Click Here
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.