Casa Systems has filed for bankruptcy, and has already arranged deals to sell its cable technology assets as well as its 5G core and RAN businesses.
The Andover, Mass.-based network technology vendor has entered into a $20 million asset-purchase agreement with Canada's Vecima Networks for its cable network technology business. The "stalking-horse bid" will set a baseline for an auction that will be supervised by the U.S. Bankruptcy Court for the District of Delaware, which is overseeing Casa’s restructuring.
Casa Systems has also agreed to sell its 5G Core and RAN (radio access network) assets to another Canadian tech company, Lumine Group, for an undisclosed sum. Casa has asked the court to approve the transaction by the end of April.
“Like many in our sector, Casa has experienced a significant decline in revenue and profits due in large part to industry-wide downward capital investment and procurement trends in the cable and telco markets,” Casa Systems CEO Michael Glickman said in a statement. "We also have incurred significant investments to bring our 5G Mobile Core and RAN products to market. We believe the sales of our businesses through a Chapter 11 process will maximize value, preserve jobs and minimize disruption for our customers.”
Glickman spoke to Next TV back in November, several months after the veteran Cisco executive took over for Casa Systems' retired founder, Jerry Guo. Glickman outlined a plan to pivot to cloud-based software solutions and compete in cable's virtualized DOCSIS 4.0 future.
The pressure was on, with Casa Systems stock having descended below $1 a share in August and the Nasdaq threatening the company with delisting.
For its third-quarter earnings report in November — tied to its last 10-Q filing to the Securities and Exchange Commission — Casa said revenue was down more than 7% year-over-year to $62.08 million. The company also reported a net Q3 loss of $25.61 million.
