Billing software company WEL Tech says it is has not been affected by Lucent’s global strip-down restructuring plan, though Lucent’s long-term plans remain unclear.
WEL Tech scored a $1.3 million OEM licensing deal with Lucent last year that saw its PV2 billing product incorporated into Lucent’s flagship billing product, Arbor/BP.
WEL Tech’s chief executive, Gavin Mitchell, says that deal has not been affected in the restructure because it fits into Lucent’s software group, which is still performing well and not part of the review.
But Lucent also has an option to buy 20% of WEL Tech, which must be exercised by July. Mitchell says he has not been updated about that option nor had any indication from US Lucent executives. Even if he had, he says, he couldn’t comment. Mitchell says Lucent exercising the 20% option would be “nice if they take it up, but it doesn’t matter they don’t".
He says WEL Tech is “still attacking” the US by itself, hiring two business development managers in Maine and San Francisco in recent weeks.
The company, which claims to have 80% of the local energy retailer market and 70 Canadian lines companies as customers, is the star and sole acquisition of listed mining-turned-e-commerce-company Spectrum Resources. Spectrum, which made much public ado about the Lucent deal in August, singled out WEL Tech in its operating surplus announcement for the last six months.
Last month Lucent announced a restructuring plan to reduce expenses by $US2 billion.