Watching Rambus in German Court; FieldCentrix Eyes IPO
Driving through the maze of Orange County freeways for the first time, the rows of offices housing technology companies reminds me of the view from the catbird seat where I covered the tech boom of the late 1990s: San Francisco and Silicon Valley. Before becoming the Business Journal’s tech writer, I worked for a co-venture of San Francisco investment bank Thomas Weisel Partners and East Coast mutual fund giant Scudder Kemper Investments. Prior to that, I covered tech for financial news wire Bridge News. I extend a hearty hello to Orange County,the economy of which isn’t second to that of Silicon Valley in any respect other than the price of office space. So with that
Irvine-based NetCom Technologies Inc. has changed its name for a third time,to VelociTel Inc.
The decision comes as the service provider to wireless communications companies plans to merge its five subsidiaries,Alvar Architects Inc., National Site Development Inc., ComNet TelCom Construction Inc., Spectrum Technologies Inc. and TowerCel Inc.,under the VelociTel name.
The company got its start as Laguna Beach-based architectural firm Alvar and changed its name to NetCom in 1998. With the most recent name switch, VelociTel hopes to distinguish itself.
“Our vision is to create a name that is very strong in the marketplace,” said Chief Executive Mario Alvarez. “There are 32 NetComs in the U.S. and there are many of them throughout the world. VelociTel is a name that we’re spending half a million dollars on trademarking throughout the world, trying to create an image that says telecommunications success.”
VelociTel, which is set to close $300 million to $400 million in debt financing by the end of the first quarter or early in the second quarter, is looking to make 10 to 20 acquisitions,with two or three “very large ones”,in the next year according to Alvarez.
“We’re probably in the middle of eight to 10 term sheets. We’re doing due diligence,” he said.
In November, VelociTel landed $75 million in funding from Willis Stein & Partners of Chicago. The company designs, builds and operates cellular towers and provides other services to AT & T; Wirleless, Sprint PCS, Verizon Wireless, Bell South Wireless and others.
Companies Watch Rambus Case
Memory company Rambus Inc.’s lawsuit, delayed last week in Germany, could have sweeping implications for Orange County memory product makers. Mountain View-based Rambus is suing Micron Technolgy Inc. and Hyundai Group in a case in which Rambus claims the two companies have infringed on its patents for high-speed memory chips.
For now, the German court is dealing with procedural issues raised by Micron and Hyundai. A trial on the infringement claims is to be rescheduled. If the court backs Rambus, almost every memory company,including those in OC,could be affected by the royalty checks memory makers would have to cut to Rambus.
Fountain Valley-based Kingston Technology Co.,a maker of memory modules,would not comment on the Rambus lawsuit except to say “we are in the middle of the suit, as we are partners with both companies and are a major consumer of DRAM technology. Since Kingston isn’t directly involved with the suit, we don’t have any comment to the litigation, other than what our customers demand. If that is Rambus, then we will produce it.”
Profits First
FieldCentrix Inc., an Irvine-based maker of software that allows field workers wireless access to business data, isn’t likely to seek more private funding but will pursue an initial public offering, according to Chief Executive Tracy Price. The company received its third round of funding in July. Though Price declined to comment on how much cash the company had on hand, he did say FieldCentrix most likely would be profitable before it would sell shares to the public.
“We’re not one of those dot-coms,” Price said.
FieldCentrix recently announced a co-marketing deal with Verizon Wireless in which Verizon plans to provide nationwide wireless network service to FieldCentrix customers.
“We are extremely pleased and proud to have a strategic alliance with Verizon Wireless,” said Judy Johnson, FieldCentrix’s vice president of marketing.
Competysis Adding Cities
Irvine-based Competisys Inc., which brings high-speed Internet access, electricity and gas to planned communities, is in talks to develop service in nearly eight or nine more communities in California, Nevada and Arizona in the next year, with about five or six of those slated to take place in the next few months, said company founder William Prentice.
“That amount may even be a bit conservative,” he said.
Competisys announced the first fully wired housing development in Napa Valley’s American Canyon last September. Competysis just received a broadband license agreement from American Canyon to put high-speed Internet access directly into homes.
“Most cities are primarily interested in broadband connections,” Prentice said. “We even had one city last year that voted not to do energy.”
