Light Reading
Only 18 months after buying it for $51 million, Spirent sells wireless video quality test business SwissQual for just $3 million

Spirent Loses on Wireless Unit Sale

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

Spirent Communications plc (NYSE: SPM; London: SPT) 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
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....
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
Jonestown
Mobile Backhaul: Going to the Dark Side?

10|30|14   |   2:26   |   (0) comments


Heavy Reading's Patrick Donegan shares his view on a dark trend that bubbled up at Light Reading's annual backhaul conference in NYC.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With YuLiao

10|30|14   |   6:27   |   (0) comments


Yu Liao, chairman of the Chinese Association for Renewable Energy in Germany, discusses the role that ICT solutions play in helping to grow renewable energy resources in Germany.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview

10|30|14   |   2:54   |   (0) comments


Sifang has been working with Huawei on several projects. JingTao Wu, Assistant President of Beijing Sifang Automation Co. Ltd., believes that the cooperation with Huawei can facilitate Sifang's process of internationalization.
LRTV Huawei Video Resource Center
A Better Connected Smart Grid: Powering Laos

10|30|14   |   5:38   |   (0) comments


Representatives of Electricite Du Laos (EDL), a state-owned corporation, discuss the importance of ICT solutions in serving their country's energy needs.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Junwei Lu

10|30|14   |   4:50   |   (0) comments


Professor Junwei Lu of Griffith University Australia describes his work with micro grid technology and the future of the power industry.
LRTV Documentaries
The Next-Gen Network Disconnect

10|29|14   |   01:23   |   (2) comments


There's a lot of talk about making networks more simple with SDN, NFV and next-gen broadband technology – but what about the complexity of introducing such capabilities?
LRTV Custom TV
Grow Your VPN Service Revenue

10|27|14   |   4:00   |   (0) comments


Watch how CSP product managers can better differentiate and maximize the value of their Internet, VPN and cloud services for business services customers, by adding premium application performance visibility to their data services.
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Like Us on Facebook
Twitter Feed