Ixia (Nasdaq: XXIA-message board) says it's ready to spend more money on acquiring wireless testing expertise despite having to write off and close down its last two M&A-led ventures into the world of mobile measurement.
That continued commitment to the wireless world comes as the test equipment vendor talks up its carrier Ethernet prospects, having announced PBT (Provider Backbone Transport) test capabilities during this year's NXTcomm show in Chicago. (See PBT Parties On, Ixia Tests PBT, and PBT: New Kid on the Metro Block.)
First, though, Ixia's wireless adventures.
Inreportingitsmost recent quarter late last month, the IP and Ethernet test system vendor, which generates more than $40 million in revenues each quarter and sports a market cap of $616 million, noted that it had recorded a "non-cash, pre-tax impairment charge of $3.3 million" attributable to asset writedowns. (See Ixia Reports Q2.)
Those write downs were related to the winding down of two wireless test operations it had bought -- Communication Machinery Corp. (CMC), a WLAN capacity test tool firm acquired for an undisclosed sum in July 2005, and Dilithium Networks, a mobile video and multimedia test tool vendor bought in January 2006 for $5.1 million. (See Ixia Buys CMC and Ixia to Buy Product Line.)
But, Ixia's reportad ded: "While the Company expects to curtail future development efforts on both these product lines, Ixia will continue to support the existing customers of these products. Ixia remains committed to the wireless test market and expects to launch additional wireless test products that address 3G and IMS [IP Multimedia Subsystem] over the next 12 months."
And not only that, it's looking to buy some more wireless assets.