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About 2wire, Inc.

When a crowd of Internet users generates a ruckus of signals, Ruckus Wireless aims to smooth the commotion and get everyone connected. Ruckus makes network gateways, controllers, and access points used to provide and manage large-scale Wi-Fi access in office buildings, hospitals, stadiums, and the Internet of Things. Its Smart-branded products help Internet and telecom providers extend range and reliability and offer scalability for rapidly growing companies. Ruckus sells worldwide through a network of more than 5,300 resellers and distributors to about 48,000 customers in a variety of industries. Its customers have included Bright House Networks, Time Warner Cable, Sky plc, and KDDI. Ruckus was bought in mid-2016 by Brocade for $1.5 billion.

Change in Company Type

By joining with Brocade ($2.26 billion revenue in 2015), Ruckus hopes to sell its Wi-Fi connectivity products to Brocade's customers, who are uses of network switches and other equipment. Brocade also seeks to sell its products to Ruckus customers.

Operations

Ruckus divides its revenue into products (93%) and services. Products include access points and controllers along with licenses. It uses industry standard Wi-Fi chips and adds its own proprietary technology to serve up wireless Internet access in traditionally challenging environments including airports, convention centers, and large outdoor public areas.

The services segment includes software updates and support after the sale.

Geographic Reach

Ruckus sells worldwide and generates 49% of revenue in the US. Europe, the Middle East, and Africa (EMEA region) accounted for 26% of sales and Asia/Pacific, 22%.

It maintains offices in China, India, Japan, Singapore, Taiwan, the UK, and the US.

Sales and Marketing

Ruckus sells its products globally through direct and indirect channels. It targets both enterprises and service providers requiring carrier-class Wi-Fi service.

Financial Performance

The company's revenue jumped 25% to $327 million in 2014 from $263 million in 2013. The company added new customers and expanded sales to existing customers, boosting revenue. Service revenue also increased in post-contract sales. Sales in the US rose 35% and by 39% in Asia-Pacific countries not including Japan, where sales fell 18%. Sales also were off in the UK and Americas markets other than the US.

Net income rocketed 360% higher to $819 million in 2014 from $1.79 million in 2013 as the company's revenue growth outpaced higher expenses. Cash flow from operations rose to $36.7 million at the end of 2014 from $28.6 million at the end of 2013.

Strategy

Ruckus' strategy includes increasing the use of Wi-Fi among its customer base, extending its sales network, and leveraging its products across its key markets.

In 2014 Ruckus spent to bolster its sales organization to reach new service providers and channel partners. It also invested in research and development by spending $15.4 million more in 2014 than 2013 (while maintaining R&D at 23% of revenue) to develop new products.

One new market Ruckus targeted in 2014 was small and medium businesses without IT support. The company's Xclaim Wi-Fi system, which is released in 2014, offers easily managed Wi-Fi services.

Also in 2014 Ruckus technology was deployed by Boingo Networks at dozens of US military installations to support social networking, gaming, voice over IP, and streaming video.

2wire, Inc.

2450 WALSH AVE
Santa Clara, CA 95051-1303
Phone: 1 (408) 235-5500

Stats

Employer Type: Privately Owned
Trainer: Marc Eriksen
Supervisor: Grace Lam
Technical Support Supervisor: Matt Spears
Employees (This Location): 138
Employees (All Locations): 298

Major Office Locations

Santa Clara, CA

Other Locations

Nevada City, CA