CEO Mike Fabiaschi, who died in his sleep last month at the age of 53, was a sales guy's sales guy who recently helped craft a $5 billion joint venture with Siemens.
The company launches a suite of products intended to make converged voice and data networks as secure as traditional telephony.
A management shake-up, likely disappointing financial results and restructuring decisions make the stability of Enterasys Networks uncertain.
The maker of network equipment will also trim costs through other budget restrictions and is "committed to achieving a successful turnaround."
Enterasys Networks will use security software from Sygate Technologies for its wireless networking products, the companies announced Tuesday. Starting this April, Enterasys will bundle Sygate's firewall protection software with its VPN (Virtual Private Network) software and its wireless PC cards. Enterasys will also sell Sygate's security software. Some major tech companies are betting that wireless networking will take off as people see the convenience of being able to work from wireless devices like a laptop or handheld computer either at home, on the road or in the office without being physically connected to a network. But as wireless networks become part of life, some companies also see the security risks.
The company's shares remain fairly static on its first day of trading after spinning off from parent company Cabletron Systems.
News from Riverstone Networks of a profit warning and impending layoffs surprises Wall Street, and comes just a day after Enterasys fired three employees for accounting irregularities.
Aprisma Management Technologies said Wednesday that its parent company, Enterasys Networks, has set the date for the company's spinoff at Feb. 5, when shares of Aprisma will be distributed to Enterasys stockholders. Aprisma, which makes network and infrastructure management software for telecom carriers and businesses, is scheduled to start trading under the ticker symbol "APRM" on the Nasdaq on Feb. 13. Aprisma's customer list includes Harley Davidson, Sprint, the U.S. Department of Defense, Aurora Health Care, MCI, AT&T and Comcast. Aprisma competes against Micromuse in the telecom sector and Hewlett-Packard's Openview software in the business market. Enterasys was spun off from its parent company Cabletron Systems last February and started trading as a separate company in August.
The company will shut its doors in early August after spinning off Enterasys Networks and distributing to shareholders its remaining shares of Riverstone Networks.