The Toronto-based company, which has a presence in Ottawa, merged with and acquired the Israeli telecom solutions provider for $50 million in 2010 with intentions to increase sales overseas.
Enablence announced the divestiture of the systems division in April 2011 due to underperformance in contracts and the amount of cash the division was using.
The company had initially expected to sell Teledata in December, but said it was unable to come to satisfactory terms. It is working with several buyers, and expects that to finish by June 30, 2012. Failing that, it will liquidate the business, Enablence stated.
"The company does not expect any significant cash proceeds from the sale or closure of Teledata," Enablence added in a statement.
Enablence announced this as it saw its quarterly revenues decrease by nearly 60 per cent year-over-year to $3.6 million.
Its net loss in the same time period decreased to $3 million from $5.4 million, while adjusted earnings saw a loss of $2.1 million – a substantial increase from a loss of $215,000 last year.
Sales fell due to a slowdown in sales for some optical components as well as "pricing pressure" due to an abundance of supply in the market, Enablence stated. This also contributed to the net loss. It expects to counteract this through introducing new products in the coming quarters.
"While the drop in customer demand is concerning, we believe we are focused on product areas that will allow us to grow regardless of whether the market returns to spending levels we saw last year," stated Tim Thorsteinson, Enablence's CEO.
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