WAYNE, N.J. " Faced with tough financial times, Microtune said Thursday (Oct. 16) it is divesting itself of its wireless communications business, which develops ICs and software for Bluetooth and other short-range wireless applications.
Microtune, best known for its cable tuner devices, entered the wireless sector in 2001 when it acquired San Diego-based Transilica for $152 million in stock. At the time, hype around Bluetooth technology and Microtune's silicon tuner products were on the rise.
Now, Microtune is scrambling to exit the wireless market. Interest in Bluetooth technology is slumping, with analyst Craig Mathias of the Farpoint Group stating recently that Bluetooth is dead. At the same time, Microtune has been plagued by financial problems, a Nasdaq delisting and an SEC investigation, causing the company to shake up its top management and restate financial numbers for the past few years.
To improve its financial position, Microtune is going back to its roots to focus on the cable communications market. "Microtune is in the process of refocusing its strategies on its core technologies and strengths, which are in the broadband RF markets," said Microtune President and CEO James Fontaine.
With the new focus in mind, Microtune is looking to exit the narrowband Bluetooth/short-range market. According to the company, several divestiture options are being considered, including the sale of the operation and/or related wireless technology and products.
No time frame has been set for the divestiture. However, the company plans to discuss the divestiture during an upcoming third-quarter earnings conference call. No date whas been set for the call.