Yesterday Sandvine reported record quarterly revenue of $22.4 Million for its second quarter of 2010. During a conference call to discuss its second-quarter financial results Dave Caputo, Sandvine’s President and Chief Executive Officer, disclosed that Sandvine has spun out one of its products into an independent company.
The Waterloo-based provider of internet network management equipment has sold the assets of its Search Guide product to a new company called Xerocole that is run by the Search Guide management team.
Search Guide is technology that addresses problems associated with common browser errors, such as when someone mistypes a website address. Rather than getting an error message, it suggests alternate search results. Internet service providers that use Search Guide receive revenue when their subscribers click on the sponsored links that appear alongside the alternate search results.
Sandvine launched the technology in 2007 after acquiring Simplicita Software in Denver. Sandvine will maintain a minority stake in Xerocole and receive royalties on revenue generated by Search Guide. Frank Bergen, who had been CEO of Simplicita, is Xerocole’s chief executive.