Re: IVL Electrix

[Mark Pulver <mark@redmoon-music.com>]

Tim Goodwin (02:35 PM 07/18/01) wrote:

 >Some folks seemed to be concerned about the future reliability of the
 >Repeater because Electrix is such a small company.  I also heard some
 >concern regarding the choice Electrix made to sell off their remaining
 >effects units (financial trouble?).  But isn't Electrix just a subdivision
 >of the same company that made Digitech as big as they are?  As I 
 >understand
 >it, IVL acquired Electrix just prior to the choice to scrap the remaining
 >effects units and make the Repeater their number one priority.  This does
 >not sound like a small company in financial trouble.

Electrix has been a division of IVL for a _long_ time. The decision to 
focus on Repeater (and future looping products) came fairly recently.

My guess is that there is little, if any, cash flow between IVL and 
Electrix. Electrix is probably operated as a separate business unit and 
would be responsible for it's own bottom line.

 From my own experience, this is much like 3Com having business units of 
Carrier Systems, USR, Palm and other groups. Each of them were responsible 
for their own bottom line, which (in hindsight) made it easy for 3Com as a 
holding company to see which unit was ripe for sale or to IPO as a spinoff.


Mark