As cities go wireless, Strix uses cash to expand reach.

Flush with another round of venture capital cash, Calabasas-based wireless networking company, Strix Systems is planning a major expansion of its engineering, marketing and sales organizations hoping to double its revenues in 2006.

Most recently, Strix raised $12 million in a round of funding led by Crosslink Capital, bringing the amount of money the company has thus far raised, to $54 million.

According to Nan Chen, Strix's vice president of marketing, the funding represents a firm endorsement of Strix's technology, which is currently being used to bring wireless Internet to locales ranging from Phoenix, Ariz. to the country of Macedonia.

"Getting funded speaks volumes about our technology," Chen said. "The wireless market for city deployment has been really hot and we're looking at it as a means to provide ubiquitous coverage. We're the technology leader in this particular space and have the highest capacity in the industry."

This brand of technology has gained the endorsement of various civic leaders who are opting to make their cities wireless. Just last week, the city of Tempe, Ariz., hosted a ribbon cutting to celebrate a new Wi-Fi system that they had implemented with Strix equipment. Following the Tempe Wi-Fi project, Strix will also be involved in projects for the neighboring cities of Chandler and Phoenix.

Additionally, Strix's products are being deployed in Macedonia, as that nation tries to go wireless. The project is the largest Wi-Fi project in the world, measuring approximately 1,000 square miles and covering three and a half million people.

Currently, the wireless market is booming, as many municipalities are clamoring to provide wireless access for their citizens. In Southern California alone, the cities of Lompoc, Cerritos and portions of West Hollywood and Burbank have made the decision to go wireless.

"It's a hot market right now. It's compelling and the mesh wireless solutions that Strix has are a good way to extend these wireless systems," Gemma Tedesco, an analyst with In-Star said. "However, the field is going to get increasingly more competitive. Wireless LAN is a great technology and companies like Cisco Systems are trying to jump into the fray."

However, it's this increased competition that has caused Strix to want to expand its operations, in an effort to stay on the technological cutting edge. The funds will also likely help Strix's international outreach, as the firm maintains four offices internationally (in France, Malaysia, Japan and China) in addition to four domestic locations.

"Our company has been slowly moving in the direction of going public," Chen said. "We have 60 employees now and that number will certainly go up between 20 and 30 percent in the next year. We also anticipate doubling our revenue in the next year if not more. It's a very explosive marketplace and we want to be leaders in the field. The wireless deployment for cities is the beginning of a new revolution. We believe that we have the best potential in the networking industry and we certainly want to push forward."

JEFF WEISS 

Staff Reporter