said it would restructure its business to create three wholly owned subsidiaries, in an effort to present a "clearer picture" of itself to the investment community.
In a statement, San Diego, Calif.-based Entrada said its new subsidiaries would all report to the parent Entrada Networks Inc. entity. The new units are:
- Torrey Pines Networks, a developer of storage-area network (SAN) transport products that extend and connect SANs over IP and optical networks
- Sync Research, a manufacturer of frame-relay products
- Rixon Networks, a manufacturer of local area networks fast and gigabit Ethernet and other adapter cards
Each subsidiary will operate independently, with independent line management, sales forces and marketing. The subsidiaries will maintain separate balance sheets, income statements and cash flow statements. Dr. Kanwar J.S. Chadha will continue to serve as president and chief executive officer of the parent company, Entrada Networks, Inc.
"We are restructuring to better reflect the intentions of our three business units, two of which, frame relay and adapter cards, are profitable," Chada said in a statement. "This restructuring will allow investors to more closely examine and better understand the company's performance and enable the SAN transport business to pursue financing that appropriately values the growth opportunity in storage networking, while giving each business the freedom to build its own brand."
"The industry and prospective customers have responded favorably to our announced storage networking products," he also said. "However, developing these all-new products under the same brand as our frame relay and adapter card businesses has led to confusion among investors and customers. Operating as three independent subsidiaries will enable each business line to achieve its potential, allow us the possibility of adding new business unit(s) and, we believe, will potentially maximize shareholder value."
Company restructures to present a "clearer picture" of its business to investors