Enfrastructure Rolls Out Mat for Ji2; Rainbow Restructures
Despite bad tech news recently, analysts have issued more warm and fuzzy comments.
The latest came from the Robertson Stephens Optical Communications Conference in San Francisco, where analysts said certain areas of the telecommunications industry,which are served by local heavies such as Broadcom Corp., Irvine, and Conexant Systems Inc., Newport Beach,remained strong despite the sector’s overall downturn.
For instance, communications gear for big metropolitan networks, components for long-distance fiber-optic equipment and chips for third-generation, wireless equipment should make it through the market downturn unscathed, analysts say.
Robertson Stephens analyst Arun Veerappan told CNET News.com that he believes companies that make components for “core” network equipment will most likely weather the environment better than other component makers. Core, or long-haul, equipment transports data between cities, while metropolitan networks handle traffic within cities.
On top of that, Robertson Stephens analyst Paul Johnson said he thinks demand for Internet services eventually will spur growth and force phone companies to improve their networks’ slow spots, which many believe reside in metropolitan areas.
The comments almost seem out of place considering, in a recent day, 31,000 tech employees nationwide lost their jobs. To boot, several large tech firms have said they see no significant upturn in their businesses soon. But where some see pain, others see promise. The thoughts coming out of the Robertson Stephens conference gel with positive comments coming from several tech firms,including Conexant and Broadcom,that say their businesses are stabilizing and could mount comebacks by early next year.
Enfrastructure’s Latest Tenant
Aliso Viejo’s Enfrastructure rolled out the welcome mat recently for Japanese tech consulting upstart Ji2, which will take up residence at Enfrastructure’s facilities in September.
Enfrastructure manages a set of office buildings that it says gives small and medium-size businesses all the services they need to get started. The new tenant marks another step toward Enfrastructure’s goal of filling its Aliso Viejo facility, the first of several the company plans to open across the country.
Ji2’s decision to take out space also adds another Enfrastructure client that is a technology business. Enfrastructure opened its doors with the intention of signing startup technology companies but has been forced to switch gears as the market for tech funding has withered.
For Ji2’s part, the company hopes to appeal to Japanese businesses looking for consulting services. In an effort to attract 20 clients in its first year of operation, Ji2 plans to market its services to smaller startups that are unable to expand operations in the United States and to corporations that want to develop alliances with US companies and universities.
“Our relationship with Ji2 is going to be successful because we believe in its company mission and we will provide the resources necessary to achieve its business goals,” said Michael Piraino, president and chief operating officer of Enfrastructure.
Rainbow Consolidates Divisions
Now there are three. Electronic security firm Rainbow Technologies Inc. has consolidated two of its divisions. eSecurity, the new division, will focus on new products for businesses looking to more effectively manage the security of assets. Rainbow iVEA and the firm’s digital right management group went into the new unit, which is headed by former Rainbow iVEA chief Shawn Abbott.
“In today’s challenging market, it is essential for Rainbow to adapt our organization to best position for success,” said Rainbow Chief Executive Walt Straub. “The creation of Rainbow eSecurity better positions our resources, core products and solutions, and strategic relationships to help Rainbow achieve success in our target markets.”
Rainbow’s change in structure leaves it with three main divisions: Rainbow eSecurity for commercial security markets, Rainbow Mykotronx for custom and high-assurance security technologies, and Rainbow Spectria for e-business services.
Telenetics Out of Woods
Telenetics is thanking its bondholders right now. The Lake Forest maker of wireline and wireless modems for the industrial market recently completed a deal that allowed $3.2 million in subordinated debentures to be rolled over into long-term debt, saving the company’s precious cash reserves.
Telenetics, which had been in default of the debt, was pleased.
“The term of the extensions are such that they no longer require repayment from fiscal 2001 cash flow, which will allow Telenetics to focus its working capital on growth requirements and current issues,” said Telenetics Chief Financial Officer David Stone.
