Light Reading
Xalted Networks has cut about 60 percent of its staff in the past six months

Xalted Axes Staff

Light Reading
News Analysis
Light Reading
3/14/2002
50%
50%

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
http://www.lightreading.com

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
LightMan
50%
50%
LightMan,
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.

LightMan
www.thesoftwareprompt.com
stuartb
50%
50%
stuartb,
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.

-Stu
LightMan
50%
50%
LightMan,
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:

http://www.cvt-dallas.org/pres...

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

LightMan
www.thesoftwareprompt.com
Flash Poll
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Light Reedy
Numbers Are In: LR's 2014 Salary Survey

7|24|14   |   1:25   |   (7) comments


Our fourth annual Salary Survey paints a picture of who's hiring, firing, earning, and yearning for a change in the telecom industry.
LRTV Custom TV
Driving the Network Transformation

7|23|14   |   4:29   |   (0) comments


Intel's Sandra Rivera discusses network transformation and how Intel technologies, programs, and standards body efforts have helped the industry migration to SDN and NFV.
LRTV Custom TV
Distributed NFV-Based Business Services by RAD

7|18|14   |   5:38   |   (0) comments


With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
LRTV Custom TV
MRV Accelerating Packet Optical Convergence

7|15|14   |   6:06   |   (0) comments


Giving you network insight to make your network smarter.
LRTV Custom TV
NFV-Enabled Ethernet for Generating New Revenues

7|15|14   |   5:49   |   (0) comments


Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
LRTV Custom TV
Symkloud NVF-Ready Video Transcoding, Big Data

7|9|14   |   3:41   |   (0) comments


Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
LRTV Huawei Video Resource Center
The Evolving Role of Hybrid Video for Competitive Success

7|4|14   |   4:09   |   (0) comments


At Huawei's Global Analysts Summit in Shenzhen, China, Steven C. Hawley from TV Strategies speaks to us about the evolving role of hybrid video for competitive success.
LRTV Huawei Video Resource Center
How CSPs Leverage Big Data in the Digital Economy

7|4|14   |   4:48   |   (2) comments


Justin van der Lande from Analysys Mason shares with us his views on how telecom operators can leverage customer asset monetization with big data. His discusses the current status of big data applications and the challenges and opportunities for telecom operators in the digital economy era.
LRTV Huawei Video Resource Center
Accelerator for Digital Business Future Oriented BSS

7|4|14   |   3:08   |   (0) comments


Mobile and internet are becoming intertwined; IT and CT are integrating; and leading CSPs have begun to transform to information service and entertainment providers. How should the BSS system evolve to enable this transformation? Karl Whitelock, an analyst at Frost & Sullivan, shares his views.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Packet Design asks network professionals how they handle the cloud, SDN, and network management.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
The Municipal Menace?
Jason Meyers, Senior Editor, Utility Communications/IoT, 7/22/2014
Cisco Puts a Fog Over IoT
Sarah Reedy, Senior Editor, 7/23/2014
Apple Earnings: Strong iPhone Sales, iPad Sales Slump, $7.8B Profit
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/22/2014
Salary Survey Report 2014
Sarah Reedy, Senior Editor, 7/23/2014
Like Us on Facebook
Twitter Feed