Copper Mountain Hires Bankers - TheStreet

A big sale nixed,

Copper Mountain

(CMTN)

now says it is on the block.

The Palo Alto, Calif., maker of digital subscriber line, or DSL, networking gear says it has hired bankers Raymond James & Associates to explore strategic options, including a possible sale of the company.

"Unfortunately, the recent cancellation of a large carrier broadband upgrade project and potential delays in decisions from several other large carriers have led us to the conclusion that we must explore strategic options in order to effectively pursue the global broadband market opportunity in the longer term," said CEO Rick Gilbert in a press release after the market's close Tuesday.

Copper Mountain was one of the DSL vanguard in the late '90s. It hit a split-adjusted market high of $935 per share in July 2000 as investors crowded into broadband equipment names.

After the telecom market deflated shortly thereafter, Copper Mountain was put on the defensive. In a Hail Mary play, Copper Mountain recently put nearly all its eggs in one basket: a new type of network edge technology called broadband remote access servers, or BRAS. These boxes, which work in the telcos' switching offices, are used to allocate pathways and provide what are called quality-of-service features. These devices allow telcos to give some traffic higher priority. This feature should help phone companies seeking to sell advanced digital services such as virtual private networks, or VPNs, and voice-over-Internet protocol.

After closing Tuesday up 7 cents, or 1%, at $6.47, Copper Mountain shares rose 3 cents to $6.50 in after-market trading.