Entrada Networks announced that it is restructuring its business, creating three separate, wholly owned subsidiaries that will report to the parent company, Entrada Networks. The new subsidiaries include Torrey Pines Networks, which develops Storage Area Network (SAN) transport products that extend and connect SANs over IP and optical networks; Sync Research, which manufactures frame-relay products; and Rixon Networks, which manufactures LAN fast, gigabit, and Ethernet adapter cards.
Each subsidiary will operate with independent line management, sales forces, and marketing, and will maintain separate balance sheets, income statements, and cash-flow statements. Dr. Kanwar J. S. Chadha will continue to serve as president and CEO of the parent company.
"We are restructuring to better reflect the intentions of our three business units, two of which--frame relay and adapter cards--are profitable," Chadha said. "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."
Chadha added, "The industry and prospective customers have responded favorably to our announced storage networking products. 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."