Bradford-based Microvitec Plc, which formed its Vitec Communications Ltd division last September, has finally revealed the name of its product source as Canadian networking company, Silcom Ltd. Microvitec acquired Silcom last year with the Vitec subsidiary in mind, but back then it would only say that its product line would be supplied by a small Canadian Ethernet and Token Ring local area networking specialist (CI No 1,514). Vitec chairman James Bailey – who formerly ran Canadian data communications equipment specialist Gandalf Technologies Ltd described Silcom as an Aladdin’s Cave of opportunity – and indeed it will have to be if it’s to see Microvitec, an ailing computer peripherals group, through a smooth diversification process into local area networking, and the high profit margins it hopes to find there. Toronto-based Silcom develops, designs and produces semiconductor components for local area networks. Its speciality lies in surface mount technology – miniaturising silicon components such as resistors, for use on circuit boards. For the moment, Vitec will be selling Silcom’s transceivers for Ethernet and Token Ring networks. And it says the product is particularly strong in connecting personal computers in large Token Ring networks – being one of only three companies worldwide that can connect more than 255 machines without experiencing degradation and reliability problems. Other networking products being sold by Vitec also have a Canadian source – that Bailey connection again. It is distributing Saskatoon-based Develcon’s bridges, routers and gateways exclusively outside of North America. In return, Develcon is selling Vitec products in that area. As part of the move into communications, Microvitec has set up its own development centre in Chester, which is working on ISDN boards for personal computers. And FDDI products will be announced soon. Last year Microvitec embarked on a rationalisation programme after announcing in December 1989 that profits had been slashed by 25%. And despite the introduction of a new management team and the diversification strategy it brought with it, the company posted interim losses last August of UKP2.1m. However, Robert Adams, who joined the company from Northern Telecom Ltd last year as part of the new team, says Microvitec is firmly on the road to profitability and added that the interim results in March should not show a loss.
