Terabeam Corp., a broadband wireless systems developer, disclosed Monday that it is acquiring Harmonix Corp., a manufacturer of millimeter wavelength wireless communications systems and components.
Terabeam, based in Kirkland, Wash., did not disclose the financial terms of the acquisition but CEO Dan Hesse said the agreement would not hurt the company’s cash cushion. Last week the company announced letting go 20 percent of its workforce, or 70 employees.
“We have taken proactive steps at Terabeam to ensure we’re in top condition to run a marathon,” said Hesse in a statement released Monday. “After this acquisition, even if one takes a worse case view and assumes telecommunications business conditions will not improve, we have no debt and the cash on hand today to get us into 2006 at a minimum.”
Through the acquisition Terabeam adds a 60 GHz point-to-point wireless system that provides fast Ethernet, OC3 and OC12 connectivity. Terabeam anticipates shortly adding 1.25gbps/gigabit connectivity.
Terabeam’s free space optics technology and Harmonix’ wavelength radio systems are similar in that they use “unlicensed frequency” and operate at similar ranges and data rates while offering more competitive prices than via fiber links, according to Terabeam.
The technologies also are distinct. For instance, Terabeam FSO systems are less susceptible to rain than the 60 GHz systems, while the 60 GHz systems operate better in fog than FSO gear. Terabeam asserts the most important distinction is that the “millimeter wavelength systems will offer unprecedented price performance.”
Terabeam’s millimeter wavelength division is based in North Andover, Mass.
