RealTime IT News

Western Multiplex: The End-to-End Solution

Cellular One has a network that covers more than 20 sites - across most of southwestern Colorado. However, the company faced a big problem; that is, much of the land is vertical. In other words, there are many mountains, ravines and valleys.

But there was a solution: Western Multiplex. The company's products were able to effectively spread the radio spectrum.

Western Multiplex is a leader in broadband fixed wireless systems. The company has demonstrated strong growth. In the past quarter, revenues were $29.9 million, which was a 152.7 percent increase from the same period a year ago. The company is even profitable, with net income of $1.7 million.

Here's a look at the company's main products:

Tsunami: This is a suite of wireless Ethernet bridges, which work across licensed and license-free connections. It is a strong solution for wide-area networks. The Fast Ethernet models allow for simultaneous wireless connections for PBX and video conferencing equipment.

LYNX Spread Spectrum Radio: This provides for unlicensed wireless interconnect solutions for a variety of telecom interfaces. They operate in the 2.4 and 5.8 GHz ISM bands and also the 5.8 GHz UNII band.

Yesterday, the company announced an acquisition of Adaptive Broadband . Like so many other acquisitions, Western Multiplex saw its stock price tumble. It was down $3-3/4 to $9.

The acquisition is a bold move and critical. It will help consolidate the fast-growing broadband fixed wireless marketplace. While Western Multiplex develops products that transmit from fiber networks to phone carriers and ISPs, Adaptive has products that transmit data from ISPs to homes and offices. Thus, the new entity will be a end-to-end solution for customers.

In terms of the financials, Adaptive has been a strong performer. In the past quarter, revenues were $24.2 million, a 42 percent sequential increase. The order backlog is $72.4 million and there is $120 million in the bank.

By all accounts, the merger looks like a classic example of synergy. And with both companies growing at a rapid rate, the recent fall in the stock price of Western Multiplex looks like a good opportunity.