r
r
r
October 1, 2001 — (WEB HOST INDUSTRY REVIEW) — Tollgrade Communications, Inc. (tollgrade.com) has announced
r
that it has agreed to acquire the software assets of the MLT/LoopCare test
r
system business from Lucent Technologies (lucent.com) for approximately $60 million in cash.
r
r
LoopCare, also known as Mechanized Loop Testing, is the Plain Old Telephone
r
Services (POTS) test system used universally by the Regional Bell Operating
r
Companies. Tollgrade intends to combine the LoopCare software with
r
Tollgrade’s DigiTest hardware to create a complete solution for testing
r
today’s POTS services.
r
r
The LoopCare-DigiTest combination also provides an economical path to
r
support the emerging needs of the digital consumer. Lucent and Tollgrade
r
have also entered into a supply agreement provide LoopCare solutions for the
r
Digital Subscriber Line and AnyMedia market.
r
r
“This acquisition establishes Tollgrade in the preeminent position among
r
POTS test system companies,” said Tollgrade chairman and CEO Chris Allison.
r
“We’re growing up from a niche player to an integrated, full-service
r
provider.”
r
r
Tollgrade and Lucent have worked together since 1998 under a multi-year
r
product development, license, and authorized reseller agreement related to
r
LoopCare and DigiTest. Because the DigiTest hardware is currently
r
interoperable with the LoopCare software, Tollgrade’s complete POTS and DSL
r
test system is immediately available for deployment.
r
r
Added Allison, “Tollgrade can now offer a much stronger value proposition to
r
Tollgrade and LoopCare customers when it comes to hardware and software
r
testing products. We want to provide not only world-class POTS and consumer-
r
oriented DSL testing capabilities, but evolve LoopCare/MLT so that we can
r
address new challenges, such as digital voice testing. Merging Tollgrade’s
r
reputation for strong customer service and value-driven pricing with the
r
innovation and testing expertise of our new staff of former Bell Labs
r
developers creates a very compelling system offering.”
r
r
There are currently about 32 employees working in Lucent’s LoopCare
r
business. Tollgrade intends to move the group to a facility near the current
r
Liberty Corner, NJ, location by the end of 2001.
r
r
Finally, Allison stated, “This is proving to be a solid third quarter for
r
Tollgrade for at least two reasons. First, in a tough environment, we expect
r
our revenue to approximate $16 million, and earnings will be approximately
r
$.15, both of which are within the range that we said in our second quarter
r
earnings release. And, second, we’re buying a product line that makes us a
r
full consumer testing provider when combined with our DigiTest products.”
