& cplSiteName &

Axiowave on Track for More Funding

Light Reading
News Analysis
Light Reading
5/7/2002
50%
50%

Axiowave Networks Inc. has raised $37 million in new funding, and company officials claim it's near to raising another $8 million more to close a total of $45 in its third round.

The size of the round and the fact that the news wasn't volunteered by the company appear to be hopeful signs, although Axiowave's still in pre-product mode and has much left to prove -- in a market that seems clearly down for the count.

The startup's founder and CEO Mukesh Chatter, who gained fame in selling Nexabit networks to Lucent for nearly $1 billion (see Lucent Loses Two Big Names and Lucent Cleans Up Core Routing ), says he's hopeful. "We're just one company, and you can't gauge anything by that, but we are beginning to get good traction. We are making substantially more progress than we were with prospective customers even three months ago."

Much remains to be seen. Axiowave doesn't expect to close its round for another six weeks or so. Chatter says the new round is coming from inside investors that have previously kicked in funding, as well as some outsiders, and matters must still be sorted.

Chatter won't name names, but in the past Axiowave has gotten funding from Madison Dearborn Partners and Soros Private Equity Partners, as well as from a range of other sources, including Chatter himself.

Since its founding in May 2000, Axiowave has maintained a cloak of secrecy only broken intermittently. A month ago, for example, word of a layoff leaked out (see Stealthy Startup Leads With Layoffs), forcing Chatter to acknowledged that Axiowave had discontinued work on an ultra-dense crossconnect switch meant to be part of its product line. About 30 employees were laid off as a result. Chatter said yesterday that the census remains at about 150 and there are no further layoffs in sight.

Sources say Axiowave is making a partially optical multiservice core switch designed to compete with gear from Alcatel SA (NYSE: ALA; Paris: CGEP:PA), Équipe Communications Corp., Nortel Networks Corp. (NYSE/Toronto: NT), and a slew of others (see A New Optical Taxonomy, page 9}).

Chatter says the new funding, when finalized, will be used to create a sales infrastructure to support beta testing and shipment of Axiowave's gear, due out later this year. Money will also be used to continue R&D.

Axiowave will not have a booth at this year's Supercomm 2002 trade show in Atlanta, however. "We'll be there seeing and meeting and talking, but it seems the idea of showing your gear in demos doesn't carry the weight it used to," Chatter says. The only thing that matters is to get a product into the hands of the right customers and get it working, he asserts. The rest will come.

— Mary Jander, Senior Editor, Light Reading
http://www.lightreading.com For more information on Supercomm 2002, please visit: Supercomm Special

(62)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
<<   <   Page 7 / 7
netskeptic
50%
50%
netskeptic,
User Rank: Light Beer
12/4/2012 | 10:24:05 PM
re: Axiowave on Track for More Funding
> I wish Ascend did more than add 1 Bil$ to LU's
> bottom line (I could get out of LU!). At this
> rate, it would take more than 24 years for that
> acquisition to simply break-even. So in the
> eyes of LU investors, Ascend folks don't
> exactly look like any champs either.

It is that bad actually - as far as I remember it was all stock acquisition, stock was depereciated 90% since, but booking is still counted in cash, so it does not look that horribly bad after all.

I do not thing that you are right about this message board attitude towards Nexabit either - I am just extremely curious to know what was it (e.g. I heard a few pretty good opinions about NX from people I learned to trust, at the time of acquisition I thought that it was a very good thing for LU) and why it did not came through. I suppose I am not alone here.

So, I am really thankful to xnx2 for posting info about box, its status, progress etc.

Thanks,

Netskeptic
xnx2
50%
50%
xnx2,
User Rank: Light Beer
12/4/2012 | 10:24:01 PM
re: Axiowave on Track for More Funding
"
> I wish Ascend did more than add 1 Bil$ to LU's
> bottom line (I could get out of LU!). At this
> rate, it would take more than 24 years for that
> acquisition to simply break-even. So in the
> eyes of LU investors, Ascend folks don't
> exactly look like any champs either.

It is that bad actually - as far as I remember it was all stock acquisition, stock was depereciated 90% since, but booking is still counted in cash, so it does not look that horribly bad after all.
"

Precisely the same thing is true for Nexabit. At the real cost to LU, simply the ampic and the fabio chipsets were a bargain. These chips can be used in many applications.

-xnx2
<<   <   Page 7 / 7
Featured Video
From The Founder
Light Reading founder Steve Saunders talks with VMware's Shekar Ayyar, who explains why cloud architectures are becoming more distributed, what that means for workloads, and why telcos can still be significant cloud services players.
Flash Poll
Upcoming Live Events
May 14-16, 2018, Austin Convention Center
May 14, 2018, Brazos Hall, Austin, Texas
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
I'm Back for the Future of Communications
Phil Harvey, US News Editor, 4/20/2018
BDAC Blowback – Ex-Chair Arrested
Mari Silbey, Senior Editor, Cable/Video, 4/17/2018
Verizon: Lack of Interoperability, Consistency Slows Automation
Carol Wilson, Editor-at-large, 4/18/2018
AT&T Exec Dishes That He's Not So Hot on Rival-Partner Comcast
Mari Silbey, Senior Editor, Cable/Video, 4/19/2018
US Govt. Bans Domestic Component Sales to ZTE
Dan Jones, Mobile Editor, 4/16/2018
Animals with Phones
I Heard There Was a Dresscode... Click Here
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed