Enablence returns to its component roots, sells off Trident7, MAGNM product lines

Enablence's former CEO Arvind Chhatbar had good intentions to transform the component company into an integrated vendor that also sold last mile access systems, but its recent decision to sell off both its Trident7 system and MAGNM product line show how difficult of a task that has been for the company.

Enablence MAGNM and Trident7

Top: Enablence's Trident7 access system. Bottom: MAGNM access product.

The Trident7 system, which Enablence gained via its acquisition of the former Alpharetta, Ga.-based Wave7 Optics, is now being sold to Aurora Networks for $5.1 million.

Aurora, which has gained prominence serving the cable market with its series of EPON and RF over Glass (RFoG) network hardware portfolio, gains complementary GPON and DPoE (DOCSIS Provisioning of EPON) aggregation functions from Enablence.

GPON has been used by cable MSOs, including Cox Business, primarily to target new business service opportunities, while RFoG enables cable operators to build Fiber to the Home (FTTH) networks that let them use their existing RF-based set top boxes, modems and OSS systems.

When the deal closes in September, Aurora will also gain 25 employees.  

But Trident isn't the only product being sold. Enablence is also selling off the MAGNM product line that it purchased from the former Pannaway to FX Support, LLC. Similar to the Trident7 sale, Enablence expects to close the sale of the MAGNM line in mid-September.

In addition to selling off these divisions, Enablence will lay off about 40 employees and is working to divest its divesting its Israel-based International Systems business.

The sale of its Trident7 and MAGNM product lines should not be of any surprise. In its Q3 2011 earnings report, Enablence revealed that systems revenues continued to be "unpredictable."

These factors led Enablence's new CEO Tim Thorsteinson to divide its two business divisions and refocus its attention on its components division.

"While we are pleased with the continued growth in revenues from our Components Business," he said in the earnings release, "the low revenues generated by our Systems Division have driven us to consider strategic options available to us."

For more:
- see the Aurora sale release
- here's the restructuring release

Related articles:
Enablence enhances Tier 1 presence with Teledata acquisition
Enablence buys Wave7 in vertical cost move
Enablence acquires Pannaway Networks
Pannaway last year acquired TelStrat's access division