CrossComm equity interest in Applied Network Technology purchased by FORE Systems in acquisition of ANT.MARLBOROUGH, Mass.--(BUSINESS WIRE)--June 5, 1995--CrossComm Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : XCOM XCOM Exterior Communication System XCOM External Communications ) announced today that its minority equity interest in privately-held Applied Network Technology Inc (ANT), which it acquired in October 1994, had been purchased by FORE Systems See Marconi. (FORE). As announced by FORE on May 30, 1995, FORE acquired ANT in a merger transaction for approximately $26 million of FORE common stock and an additional $9 million in stock options which will replace existing ANT options and will vest over time. The transaction will be accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. by FORE. ANT, located in Westford, Mass., and a technology partner of CrossComm since early 1994, is an innovative developer of ASIC-based, high performance, low cost Switched Ethernet An Ethernet network that is controlled by a switch instead of a shared hub. The switch cross connects all clients, servers and network devices, giving each sending-receiving pair the full rated transmission speed. and Fast Ethernet switching and network management solutions. ANT's powerful ASIC (Application Specific Integrated Circuit) Pronounced "a-sick." A chip that is custom designed for a specific application rather than a general-purpose chip such as a microprocessor. technology, which features a unique distributed store and forward architecture, has been licensed by CrossComm pursuant to a July 1994 development agreement between ANT and CrossComm, and is being used in CrossComm's Ethernet Switching product line, which recently began shipping. Ethernet Switching is an integral element of CrossComm's ClearPath strategy, which allows customers to migrate from the shared LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. environment, through LAN switching to Asynchronous Transfer Mode See ATM. (communications) Asynchronous Transfer Mode - (ATM, or "fast packet") A method for the dynamic allocation of bandwidth using a fixed-size packet (called a cell). See also ATM Forum, Wideband ATM. ATM acronyms. Indiana acronyms. (ATM) switching. The sale of CrossComm's minority equity interest in ANT to FORE, which will be reflected in CrossComm's financial results for the quarter ending June 30, 1995, is expected to result in a gain on sale of investment in excess of $2 million, based upon the estimated current fair value of the FORE shares received as consideration. "Not only are we obviously pleased with the financial return on our recent investment, we believe FORE's acquisition of ANT serves to validate the exceptional quality of the ANT technology, key portions of which form the basis for our new LAN switching modules," said Art Coviello, CrossComm's executive vice president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "With our best-of-breed LAN switching solutions gained through our technology partnership with ANT now in place, we are excited about the opportunities our future holds as we deliver switching solutions based on our ClearPath strategy," concluded Coviello. About CrossComm Marlborough, Mass.-based CrossComm Corp. is a leading worldwide provider of advanced network devices, network management solutions and customer centered service programs that enhance the information goals and business purposes of corporations globally. CrossComm designs, develops, manufactures and sells high performance networking solutions that assist organizations in making the transition from today's hub and router-based networks to next generation LAN switching and ATM based networks, where high-bandwidth applications are being implemented. CrossComm's worldwide headquarters are located at 450 Donald Lynch Boulevard, Marlborough, Mass. 01752. CrossComm can be reached by telephone at 508/481-4060 or by fax at 508/229-5535. CONTACT: CrossComm Corp., Marlborough Allan M. Kline, 508/229-5309 or Edward M. Durkin, 508/229-5371 |
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