Agilent experiencing greater demand for wireless test and measurement products

Increased demand for Agilent Technologies Inc.’s wireless communications test and measurement products is being taken as a sign by the company that a turnaround in the communications sector could be near. Company representatives tell Report on Wireless that increased demand is being felt from equipment and component manufacturers looking to shorten time to market for new products. The prolonged downturn in the global communications sector forced industry players to move away from technology development and concentrate primarily on improving operational efficiencies. Jim Wallace, an account manager with the company’s Canadian operations in Ottawa, tells RoW that Agilent was just as much a victim of the downturn as the equipment and component manufacturers. But he adds that the company is now experiencing renewed interest in its test products and that’s a positive sign. Higher demand for test equipment may be another sign that the communications industry as a whole is beginning to show signs of recovery. Interviews with some key executives earlier this year following a technology symposium in San Jose revealed that there is a generally positive buzz permeating the industry (RoW, Feb. 4/03). To accelerate interest in the company’s products, Agilent is giving a greater push to its flexible payment program. While available for some time, Wallace says that during the telecom bubble companies just handed over the money for the equipment. That simply isn’t an option now, he says, explaining that companies looking for test equipment can lease the equipment or pay for it using flexible terms. Key benefits of Agilent’s products are their ability to shorten time to market and to decrease the overall cost of testing. Michel Gagné, an application engineer with the company, explains that equipment manufacturers can significantly decrease design cycles by testing the product in a variety of different scenarios, which can then be used to improve on the product before development gets too far along. "If you can simulate ahead of time, it can sure save you a lot of time," he says. Major manufacturers throughout the world are using Agilent’s products in their production lines. Canadian companies are also employing the test equipment, including Research in Motion Ltd., Sierra Wireless Inc. and SiRiFIC Wireless Corp. Last month, Agilent Ventures injected some cash into SiRiFIC through an investment led by the Business Development Bank of Canada. Agilent has undergone its own restructuring having most recently reduced its global workforce by another 4,000 employees. This staffing reduction will save the company another US$125 million per quarter and it’s hoped will help Agilent reach a fourth quarter break-even point of US$1.45 billion. To date, the company has realized approximately US$1.25 billion in annual savings. Despite having to reduce head count as a way to combat the realities of the downturn, the company made a concerted effort to improve relationships with existing customers. Wallace says one way was to develop an effective call centre where companies employing Agilent products can deal with the same person every time there is a problem, which makes for a more effective experience.

Agilent experiencing greater demand for wireless test and measurement products

News | April 15, 2003

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