& 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....
Featured Video
From The Founder
Light Reading is spending much of this year digging into the details of how automation technology will impact the comms market, but let's take a moment to also look at how automation is set to overturn the current world order by the middle of the century.
Flash Poll
Upcoming Live Events
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 2, 2017, 8 Northumberland Avenue London
November 10, 2017, The Westin Times Square, New York, NY
November 16, 2017, ExCel Centre, London
November 30, 2017, The Westin Times Square
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Is US Lurching Back to Monopoly Status?
Carol Wilson, Editor-at-large, 10/16/2017
Pai's FCC Raises Alarms at Competitive Carriers
Carol Wilson, Editor-at-large, 10/16/2017
The Big Cable DAA Update
Mari Silbey, Senior Editor, Cable/Video, 10/11/2017
Telecom Italia Covers 73% of Italy With NB-IoT
Iain Morris, News Editor, 10/13/2017
Muni Policies Stymie Edge Computing
Carol Wilson, Editor-at-large, 10/17/2017
Animals with Phones
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed