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Disaster for Entrada?: Page 2 of 4

  • Entrada plans to carve up its business into three wholly owned subsidiaries: Torrey Pines Networks (SAN transport development efforts), Rixon Networks (adapter card business), and Sync Research (frame relay products and services business, currently classified as discontinued operations). The company hopes that this new structure will be the most effective way for these businesses to minimize operating costs and attract investment.

    “For starters, we are already a public company, so investors are not going to get the returns they would if we were private; and secondly, they do not want to invest in legacy businesses, which the frame relay and NIC card operations are,” says Michael Harris, senior VP marketing and business development at Entrada.

    This is the primary reason for the restructuring, Harris says. “We need to get the SAN transport business to stand on its own feet -- then it should attract investment.”

    [Ed.note: It is perhaps unfortunate that Entrada has chosen to name this part of its business after the Torrey Pine -- an endangered species in California. Timberrrrrr?!]

  • 20 percent workforce reduction

    Entrada plans to move its Maryland adapter card business unit to Irvine, Calif., to bring down staffing costs. After the layoffs, the headcount will be 70 to 80 people, with just under 40 in the SAN transport business and the remaining half split between the frame relay and adapter card businesses.

  • Nasdaq delisting threat