Intrinsync Technology " sells the farm "

     This blog has been saying for several years now that Intrinsync Technology needs new products and new revenue streams.Their last quarterly report (Q3) shows a continuation of the same trend  seen over the last 2 years.Consequently they have decided to use their open-Q module technology and it's revenue stream to get themselves a better deal.It is not that they weren't getting orders and even some very big ones.But their revenues were showing little or no year over year increase.Consequently this blog tried to arrange a merger with Sangoma Technology which is in their market space but showing more growth.After several attempts at a Canadian merger Intrinsyc decided on an American partner.They chose to dance with Lantronix which is listed on the Nasdaq exchange and has a market cap of about $92 million.
      The Future for Open-Q Modules 
  Intrinsyc Technology was originally doing much more software technology but they gradually switched to doing more hardware and then adapted this hardware technology.I believe they got a hardware contract from Quallcom to buy and build computer modules they referred to as Open-Q modules.And gradually they only sold these modules.This blog criticized them for being too dependent on a single product line.So they started to modify these modules to be used for various applications.Still the market was too limited and revenues stalled.However they were getting some bigger orders and this blog became somewhat hopeful of their future.Even at that, this blog recommended an alliance with Sangoma Technology which had a more rapidly growing product line and market.Sangoma is located in Markham, Ontario and the distance between them may have hindered a merger.      

         A Healthy Merger
   This blog would have preferred to see a Canadian merger, especially with Sangoma Technology.However it will probably do well with Lantronix(listed on the Nasdaq) which actually has a smaller market capitalization. Sangoma produces communication infrastructure and Intrinsyc Technology designs,produces and modifies telecommunications and internet  computer modules.ITC has increased the number of applications recently partly because it  modified the internal software of it's Open-Q modules. It still has it's some of it's software capability remaining.In addition, ITC now gets some quite large orders to manufacture and modify communications   equipment.Ideally this could have been a very successful Canadian combination.If the merger with Lantronix is as suitable, look for ITC to drift slowly towards $2.00 a share by early summer.If not then Sangoma will likely be watching closely.