TEO - Ready to go into Orbit!

Bluetooth specialist IVT eyes share offering
By John Walko

EE Times
20 December 2004 (2:55 p.m. GMT)


LONDON — Bluetooth hardware and software specialist IVT Wireless Technology plc is preparing for a $3.89 million share offering with institutional and trade investors ahead of an expected floatation in the second half of next year on AIM, the London market's small companies list.

The proceeds would be used to gear up operations and further develop Bluetooth cordless telephony profile (CTP) handsets and related access points developed by the company.

The technologies are at the forefront of fixed-mobile convergence, and IVT has already received orders from BT for trial tests with the phones as part of its major Bluephone project that also includes Motorola and Ericsson.



IVT said it has also received trial orders for its CTP fixed-mobile phones and technology from China Telecom and Swisscom, and is in talks with Alcatel for a global reseller deal.

The company has two principal areas of operation: hardware development and manufacture and software licensing. It suggests that CTP phones have huge potential as interest grows globally for fixed-mobile convergence and for handsets that can automatically select whether it is more cost effective to use fixed or mobile networks.

In the share placing document, IVT's directors suggested that this part of the business has the potential to grow revenues to $100 million a year in four years.

The software licensing operation, which includes IVT's BlueSoleil Windows product that is used by Bluetooth chip makers and hardware manufacturers, including Cambridge Silicon Radio, RFMD/Silicon Wave, Ricoh, Fujitsu, Pioneer and Panasonic, is estimated to attain revenues of $5 million a year within three years.

IVT also markets BlueTester, which is based on the latest SIG test specification and consists of tools for both interoperability and conformity. IVT has distributed BlueTester to all SIG members for free, and the company said future revenues will be achieved by charging an annual support fee. BlueTester is now the de facto standard for testing Bluetooth products. IVT is also developing a dual Wi-Fi and Bluetooth Access Point that it expects to launch in the middle of 2005.

The company said part of the funding it plans to raise now is also targeted to increase R&D facilities and extend trade mark and patent protection.