Buying what it needs, shedding what it doesn't
Google Factor: 8,390
Minneapolis, Minn.-based ADC Telecommunications Inc. knows when to strike when the iron is hot, and when to back off when market chills set in.
Realizing the need to add a next-generation cable modem termination system to its portfolio, ADC in October last year snapped up Broadband Access Systems Inc. and the start-up's DOCSIS 1.0-qualified Cuda 12000 chassis.
The Cuda has been part of several MSO deployments, as cable operators continue to prepare for more advanced data and voice services. Cox Communications, for instance, has deployed the Cuda 12000 in its Mid-America region. The Cuda 12000 will also factor into Callahan Associates cable system upgrades in Germany, and Millennium Digital Media's buildout in Maryland.
Development hasn't stopped with the Cuda 12000 chassis. ADC is also targeting the small cable system and multi-dwelling unit sector with the Cuda 1000, a pizza-box sized CMTS. Designed for systems with less than 20,000 homes, the Cuda 1000 is outfitted for data traffic as well as "second line" IP voice services, thanks to DOCSIS 1.1 capabilities. That product should also provide an answer to similar stackable CMTSs from companies like Motorola Broadband and Arris Group Inc.
ADC, like most others in the sector, has not been immune to the economic slowdown, and has taken steps to weather the storm. In its most recent move to streamline, the company said it would layoff a group of senior managers, including its COO, and save about $15 million to $20 million per year in the process.
That followed other ADC efforts to cut back. In July, ADC sold a portion of its cable assets–among them its Optiworx family of modular headend and outdoor-node equipment and its line of digital-video transport products–to C-COR.net Corp. for about $32 million.
That deal essentially shifted ADC out of the HFC transport business, giving it a clearer business line that targets cable plant upgrades. In addition to its Cuda CMTS line, ADC also held onto its HomeWorx circuit-switched cable telephony equipment, as well as its RFWorx line and Singularite products, which handle customer-management, billing and service fulfillment applications.
Additionally, ADC's recently introduced "FastFlow" broadband provisioning manager could factor in to future deployments of multiple ISPs on cable networks, and help operators switch on new tiered and IP telephony services.