Madge Networks will spin off its Lannet Ethernet division to become a separate company in the autumn, as part of a broader restructuring.
Chairman and chief executive Robert Madge told investment bankers at the Hambrecht & Quist Technology Conference in San Francisco that the company has decided to give Lannet - which has operated autonomously since last summer - full independence during the third quarter of 1998.
There is no synergy between Lannet and the company?s other divisions, Madge said, and the change gives shareholders the chance to invest in the technology they prefer. "Lannet is ready to stand alone. The business has been separate since the restructure in July 1997, it was profitable in Q1 1998 and there is a strong niche in multilayer switching technology."
He said Lannet, which will use a blue circle with curved black arrows as its logo, will offer Gigabit Ethernet products during the third and fourth quarters of 1998.
The move will leave Madge with Token Ring, video and carrier ISDN divisions. "We are back in the black but not on a strong growth train yet," Madge said. "Next, we will develop the emerging video and carrier markets."
Token Ring is Madge?s core strength but it hopes to gain sales in H.323-based videoconferencing and ISDN sales to smaller businesses based outside cities.
In April 1997, 'VNU Newswire' revealed that Madge planned a drastic restructuring and the company said it would pull out of its ambitious plans to offer complete networking solutions to global companies. It has since returned to profit and cut its head count from 2,000 to 1,201.
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