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
Is your network built on 'The Old IP,' or are you part of 'The New IP' revolution?
LRTV Documentaries
A Cultural Shift for an OTT World

9|26|14   |   01:41   |   (3) comments


Telcos need to embrace a new approach to partnerships if they are to generate extra revenues quickly and give customers what they want.
LRTV Documentaries
New Skills Needed as Telecom, IT Collide

9|26|14   |   4:07   |   (1) comment


As telecom and IT collide, new technologies are emerging, new skills are needed and new opportunities for women are arising.
UBB Forum News
Do IP Networks Need An Overhaul?

9|25|14   |   02:01   |   (0) comments


As traffic levels ramp, do IP networks need new technologies and topologies?
LRTV Documentaries
Sprint Wields Its Influence in the Valley

9|25|14   |   3:09   |   (10) comments


Anne-Louise Kardas, Sprint's connection to startups in the Valley, explains how telcos can be innovative and find new opportunities with partners.
LRTV Documentaries
SDN, NFV & The Future of XO's Network

9|25|14   |   3:47   |   (0) comments


XO Communications COO Don MacNeil explains how cloud, SDN and NFV are altering its network requirements as well as changing data centers of the future.
UBB Forum News
The OTT Conundrum

9|24|14   |   01:39   |   (0) comments


What is holding back prosperous partnerships between telcos and the OTT players?
LRTV Documentaries
Putting Broadband to Work

9|24|14   |   01:26   |   (0) comments


High-speed broadband network rollout is key to telco strategies, but it's what happens after the network is built that counts.
Light Reedy
Light Reading's Women in Telecom Recap

9|24|14   |   0:55   |   (4) comments


Our first Women in Telecom breakfast was a huge success, and we hope you'll join us in London for the next event on November 6.
UBB Forum News
Monetizing Ultra-Broadband

9|24|14   |   01:43   |   (2) comments


Ultra-broadband networks need to be built, with fiber-to-the-premises the ultimate goal, but they need to be monetized, too.
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
Upcoming Live Events
October 29, 2014, New York City
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
June 9-10, 2015, Chicago, IL
Infographics
Half of the world's population will be connected to the Internet by 2017, but not just by smartphones and desktops.
Hot Topics
Facebook Pokes Around LTE Direct
Sarah Reedy, Senior Editor, 9/25/2014
Sprint Wields Its Influence in the Valley
Sarah Reedy, Senior Editor, 9/25/2014
US Ignite Cultivates Gigabit Apps
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/25/2014
Comcast Turns Off Streampix
Mari Silbey, Independent Technology Editor, 9/26/2014
Like Us on Facebook
Twitter Feed