ACT ANNOUNCES PRODUCT RESELL AGREEMENT WITH FORE SYSTEMS.
In a sign of a continuing turnaround, ACT Networks has announced a reseller agreement with Fore Systems, the second major strategic alliance it has made since the company was restructured.
Wall Street reacted positively to Wednesday's announcement, raising the stock of the Camarillo maker of networking products by $1.125, or 8 percent, to $13.625.
``It's a relatively significant piece of news,'' said Reginal King, an analyst at Hambrecht & Quist in San Francisco. ``This is a company in transition. This will bring revenue growth back to the company.''
Under the agreement, networking company Fore Systems will market and resell ACT's NetPerformer line of multiservice access products. NetPerformer lets businesses interconnect branch and central site computer systems. A few months ago it announced a similar deal with telecommunications equipment giant Lucent Technologies.
The agreements should strengthen revenue starting in the third quarter, at which time the company expects to be profitable as well, officials said. The Lucent and Fore deals should make up 30 percent of business in 1999.
Both alliances have brought back a sense of accomplishment at ACT Networks - a sign of the market's acceptance of its products.
``It's the first time in a while that has been the case,'' said Mike Zeile, vice president of marketing at ACT, who is part of a new management team.
For years, ACT has lost money, mainly due to poor integration of acquisitions, company officials said.
Earlier this year, the company installed a new management team that shaved $2 million in costs, integrated operations better and focused on core products.
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|Publication:||Daily News (Los Angeles, CA)|
|Date:||Dec 10, 1998|
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