After announcing a 2009 net loss of $13 million, wireless broadband and WiMax communication equipment maker Tranzeo Wireless Technologies Inc.
, is buying a U.S. firm to broaden its product line.
Tranzeo, based in Pitt Meadows, B.C., is buying Aperto Networks, Inc. of Milpitas, Calif. by issuing common shares to Aperto stockholders. The deal, expected to close later this month, will see Aperto run as a Tranzeo subsidiary.
In a news release Tranzeo said the deal will greatly increase its market share as it becomes a complete end-to-end broadband solutions provider featuring WiFi, WiMax and LTE products. Aperto's current backlog of all purchase orders is US$8.3 million. This will be added to Tranzeo's current backlog of US$32.7M.
Tranzeo makes point-to-point and point-to-multipoint radios, WiMAX equipment, and WiFi mesh network solutions for business, governments and carriers, while Aperto makes fixed and mobile WiMax base stations and subscriber units for carriers.
At the same time Tranzeo released its latest financial results. Revenue in 2009 totalled $11.6 million for 2009, down from $19.4 million for 2008. Revenue for the fourth quarter was $1.6 million, compared with $3.2 million the previous year. Gross profit for 2009 dropped to $3.2 million from $4.5 million the previous year.
The company said the decrease in sales was primarily due to reduced demand for Wi-Fi products in North American, which it attributes to the global economic downturn. It noted there is a backlog for its WiMAX products.