Thursday, October 21, 2004

ADC to Sell Metrica Service Assurance Software Platform

ADC will sell its Metrica service assurance software group to WatchMark Corp. for $35 million in cash and 3.2 million shares of WatchMark common stock, which represents less than five percent ownership of WatchMark. The Metrica service assurance software group, which has about 250 employees, provides solutions to help service providers improve service quality, lower operational costs and optimize network usage and capacity. The applications include Metrica Performance Manager, which provides a complete view of network quality and usage; Metrica Service Manager, which enables the delivery of new services to drive growth; Metrica Service Assurance Framework, a modular and open framework that ensures Metrica solutions support innovation and competitive differentiation; and Metrica/NPR, which allows users to manage data from multiple vendors and forecast performance trends. In the first three quarters of ADC's fiscal year, Nov. 1, 2003 - July 31, 2004, Metrica sales were approximately $21 million with an operating loss of approximately $2 million, after direct expenses only. In ADC's fiscal year ended October 31, 2003, Metrica generated sales of approximately $30 million and an operating income of approximately $5 million, after direct expenses only.

Watchmark, which is based in Bellevue, Washington, provides wireless service providers with software tools necessary to deploy and monitor services at the network, application and customer levels.

ADC said the sale will enable it to focus on its core strengths as a global network infrastructure company.

  • In June 2004, ADC agreed to sell its customer care and billing software division to Intec Telecom Systems, a supplier of Operations Support Systems (OSS) for fixed, mobile and next-generation networks, for $74.5 million in cash. Intec will assume control of ADC's customer care and billing software offerings including approximately 600 employees, current relationships with existing software customers and related facility space. ADC's customer care and billing software platforms include Singl.eView, a complete revenue, transaction, billing and service management solution that resides at the core of the OSS and business support systems (BSS).

  • In May 2004, ADC sold its IP Cable Business Unit to BigBand Networksfor an undisclosed sum. ADC will become a minority interest holder in BigBand Networks as part of the agreement. The acquisition does not include the Homeworx cable telephony system that had also been a part of the business unit. ADC's Cuda CMTS (cable modem termination system) is a widely deployed and carrier-class platform for switching and routing of advanced IP services, and the FastFlow Broadband Provisioning Manager is a server suite that activates and configures such services.

  • In March 2004, ADC agreed to acquire the KRONE Group, a global supplier of copper- and fiber-based cabling products, from GenTek Inc.. The deal was valued at approximately $350 million, of which ADC will pay cash of approximately $291 million and assume certain defined liabilities consisting principally of KRONE's pension obligation for its German workforce.


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