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Tollgrade Communications Inc., in the midst of considering its future, is looking at the thousands of miles of overhead electrical lines stretching across the country as a new business opportunity.

The Harmar-based company known for making test equipment for cable and telecommunications networks has struggled in recent years as those industries switch over to new network platforms. CEO Joe Ferrara told shareholders at Tuesday's annual meeting that Tollgrade will release a test and measurement product later this year for the power utility market.

Called LightHouse, the "smart grid" system will monitor electrical lines for trouble, predicting outages and making remote repairs long before customers have to call in with complaints.

"It's a completely new area for Tollgrade, and it's pretty exciting," Ferrara, who joined Tollgrade in August and became CEO in November, said after the meeting.

"There is some competition, but we haven't seen anyone with the same type of total solution" combining LightHouse's antenna-topped sensors that sit atop wires with Internet protocol software and other equipment to analyze and manage a power system, he said. A large, investor-owned utility is testing the products, he said.

Tollgrade soon will begin selling its DigiTest Ice Internet protocol products for remote network testing, Ferrara said. The products were delayed last year.

Tollgrade last month hired a financial adviser, Needham & Co. LLC, to help it look at business options, a process that could lead to a sale of all or part of the business, as well as partnerships, mergers or acquisitions.

"We are moving with a sense of urgency," Ferrara said, declining to say more.

Tollgrade finished this year's first quarter with a $6.5 million loss or 49 cents a share, although one-time charges account for 33 cents of that. The loss compares to a slight profit of $111,000, or one cent, a year ago. Revenue was up almost 11 percent to $13.18 million.

In 2008, the company's stock is down 41.6 percent. Tollgrade shares finished at $4.80 yesterday, up a penny.

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