US-based Shiva, struggling in the moribund market for remote access networking hardware, is hoping virtual private networking (VPN) will jump-start sales.
The firm is best known for remote access servers such as its LANRover line, which enables employees to dial into company networks from outside the office and access data and applications.
Credited with pioneering the remote access market, Shiva lost market share in the past two years to bigger rivals such as Cisco Systems, 3Com, and Ascend. It sold US$57 million worth of remote access servers last year, giving it 11.8 per cent of the world market, according to technology consultancy, Dataquest.
However, Shiva was far behind in the faster-growing market for remote access concentrators - larger devices which handle thousands of users at a time, are easily upgraded for more users by plugging in extra modules, and are sold to large firms or Internet service providers.
Dataquest said the company sold $63.6 million worth of concentrators last year - only 10 per cent of market leader, Cisco's sales.
Shiva's 1997 revenues were $144.3 million, down from $200.1 million in 1996, as the company reported losses of about $13.6 million.