Light Reading

Xalted Axes Staff

Light Reading
News Analysis
Light Reading

Plano, Texas-based Xalted Networks Inc. continues to shed staff as it struggles to complete a second round of funding.

The telecom equipment maker that once employed some 130 people now has a headcount of 52, according to sources close to the company. Xalted cut about 30 jobs in the second half of 2001. It cut another 48 jobs earlier this month and did not offer those employees a severance package, according to some who were let go.

Xalted board member Eric Zimits, a managing director at Granite Ventures LLC, confirms the layoffs but says he's not sure of the exact number let go.

Getting a product to market with a smaller staff is just one of Xalted's challenges. The company was once building what it called an optical access router, a box meant to replace digital loop carriers by offering broadband data services and traditional voice services over a service provider's existing copper and fiber facilities.

The product, however, still has not entered planned trials with e.spire Communications Inc. (Nasdaq: ESPI) and XO Communications Inc. (OTC: XOXO) and the company seems to be several months away from booking significant revenues, Light Reading has learned.

In order to get additional support from its VCs, Xalted has adopted several measures to cut its burn rate significantly, including moving its software development to India, say sources close to company founder Bob Kondamoori.

"[Xalted] is just entering its beta phase right now so it's still early on," says Zimits. "Any changes to features and product direction and things like that will be subtle. It's what you'd expect in building this sort of broadband access product in this market."

In late February, the company brought in Allen Adams, the former senior VP of strategic planning and business development at DSC [now Alcatel SA (NYSE: ALA; Paris: CGEP:PA)], to serve as interim CEO. Adams, however, never officially took the top job. "Allen was doing some work for the company, and now he's not as active as he was, but I think he still wants to the company to succeed," says Zimits.

Prior to that, Pat Rockford, Xalted's VP of sales, left the company to join Photuris Inc., another startup. Though Rockford left weeks ago, Xalted managers maintained that he was on a leave of absence until recently, according to sources familiar with the situation.

In September 2001, Xalted announced it closed an "oversubscribed" $21 million Series A round (see Xalted Raises $21 Million). Its investors include BlueStream Ventures, Granite Ventures, Charter Venture Capital and Alliance Ventures. At that time, the company said it was in the process of raising its Series B round, which was expected to close by the end of 2001.

In February 2002, the Dallas Business Journal reported that Xalted had closed another $10 million round. Zimits says the company's existing investors put up $10 million and Xalted is still looking for another $15 million elsewhere to complete the second round.

Xalted's managers declined to comment for this article. "We can't comment on anything until after we issue the press release that we're putting out on Friday," says Keith Bradshaw, Xalted's director of marketing and product management.

— Phil Harvey, Senior Editor, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
User Rank: Light Beer
12/4/2012 | 10:47:51 PM
re: Xalted Axes Staff
for a smaller sign...Seems like everyone in Dallas viewed the monster sign and prime tollway realestate as more sizzle than steak...

Also I believe there is some sort of mandatory severance for companies who layoff more than 50% of their workforce in less than 6 months. Don't know the details though.

User Rank: Light Beer
12/4/2012 | 10:47:48 PM
re: Xalted Axes Staff
It's not surprising that Xalted is having difficulties. Their management little to no startup experience. Any investoor would be wary of that.

User Rank: Light Beer
12/4/2012 | 10:47:47 PM
re: Xalted Axes Staff
If you are interested in a presentation which the CTO gave to the Dallas chapter of IEEE - here is the link:

To me it sounds like a reasonable vision, maybe a bit to early for the RBOC's to bite off yet?

From The Founder
Steve Saunders provides an overview of white box networking and introduces a new "slim line" version of the OSI 7-layer model.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
Centec on Ethernet Switching

11|26|15   |   09:58   |   (0) comments

Centec CEO James Sun talks to Steve Saunders about Ethernet switching and the white box revolution.
LRTV Custom TV
Delivering Service Agility in the Virtualization Era

11|25|15   |   5.41   |   (0) comments

Interview with Massimo Fatato, WW OSS Business Lead, Hewlett Packard Enterprise.
Wagner’s Ring
How Might Open Source Fail?

11|24|15   |     |   (10) comments

Open source, SDN, and NFV are looking inevitable – but performance, standards proliferation and regulatory capture could derail the movement.
LRTV Custom TV
NFV Lifecycle Orchestration – a Fresh Vision for Telco

11|23|15   |   6.40   |   (0) comments

Simon Osborne, CTO Comptel, and Heavy Reading's Caroline Chappell reveal the business impacts of new SDN and NFV, and what the term service orchestration actually means. Together they define Lifecycle Service Orchestration and how the virtualized future will look for telecoms operators.
Between the CEOs
Cisco's Virtual Role in Saudi

11|20|15   |   12:15   |   (2) comments

Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
LRTV Huawei Video Resource Center
Huawei Leads With Kubernetes for Cloud PaaS

11|19|15   |   08:26   |   (0) comments

Huawei is looking to Kubernetes as a key tool for building robust open source technologies for customers and partners, said Ying Xiong, chief architect of cloud platform at Huawei, in an interview with Light Reading West Coast Bureau Chief Mitch Wagner at the recent Kubecon conference.
Women in Comms Introduction Videos
WiC in London: The Highlight Reel

11|19|15   |   5:33   |   (1) comment

NetCracker's Mervat El Dabae headlines an inspiring morning in London with help from leading women from Vodafone, TalkTalk, Hyperoptics and Ciena.
LRTV Documentaries
Why Saudi's So Hot for New Tech

11|19|15   |   05:07   |   (0) comments

Light Reading's Steve Saunders reports from Saudi Arabia, a hyper-competitive market desperate to embrace the next generation of communications technologies and services.
LRTV Custom TV
Why Data Models Deliver More Value Than Information Models

11|19|15   |   5.08   |   (0) comments

Stefan Vallin argues that more automation is needed to manage end-to-end services and the hybrid networks they run on, and that data models are key to achieving this.
Telecom Innovators Video Showcase
SDN Management & Orchestration in the WAN

11|17|15   |   7.20   |   (0) comments

Carol Wilson and Packet Design CTO Cengiz Alaettinoglu discuss CSPs' SDN service delivery and assurance requirements. Learn about a modular approach to building automated control, orchestration and management functions for the WAN that are policy- and analytics-driven.
LRTV Custom TV
Flash Networks: Optimizing for Radio Spectral Efficiency

11|17|15   |   3:34   |   (0) comments

Today most optimization vendors only focus on optimizing voice or data. Ofer Gottfried, Flash Networks' CTO, shows how improving data throughput and maximizing spectral efficiency reduces capital and operating expenses while also providing a platform for user engagement.
LRTV Custom TV
Making Pay-TV User Experiences Millennial-Friendly

11|16|15   |   6:42   |   (0) comments

The unique challenge of reaching and engaging Millennials is driving pay-TV video experience transformation that can include higher quality UIs, viewing of multiple content streams at once and seamless transitions between handheld devices and the television.
Allot MobileTrends Report H2/2015 reveals how daily online behavior can be used to discover smarter ways to profile customers and propose valuable, real-time offers to them.
Hot Topics
Samsung to Sell Wireless Networking Unit?
Dan Jones, Mobile Editor, 11/23/2015
Samsung: No Sale of Wireless Unit
Dan Jones, Mobile Editor, 11/25/2015
How Might Open Source Fail?
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/24/2015
Sprint to Get $1.2B From New Leasing Venture
Dan Jones, Mobile Editor, 11/23/2015
Networking Shines in HP's Gloomy Final Earnings
Mitch Wagner, West Coast Bureau Chief, Light Reading, 11/25/2015
Like Us on Facebook
Twitter Feed
December 15, 2015
Virtualizing Cable Services
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Centec CEO James Sun talks to Steve Saunders about Ethernet switching and the white box revolution.
Light Reading founder and CEO Steve Saunders talks with Zayan Sadek, Regional Manager at Cisco Systems, about the competitive communications services market and advance of virtualization in Saudi Arabia.
Cats with Phones
Can't Find the Phone on Thanksgiving? Click Here
Check under the cat! (hint: bottom right)
Live Digital Audio

Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and for copper plant evolution and the various deployment possibilities for FTTH/B.