Light Reading

Movaz Bags $20M More

Phil Harvey
News Analysis
Phil Harvey
1/26/2006
50%
50%

Movaz Networks Inc. announced today it has closed $20 million in venture funding, along with a line of credit for $12 million.

The investors in this latest round include Anschutz Investment, Comcast Interactive Capital, Menlo Ventures , Oak Investment Partners , Meritech Capital Partners , and WorldView Technology Partners . Movaz says it has raised $182 million to date.

The round was closed on December 30, and this is the first time Movaz has acknowledged Comcast as an investor and customer, an item Light Reading reported in 2004. (See Sources: Comcast Has Movaz Stake.)

Movaz says it raised the new funds to help it grow from a "50 to 60 million dollar a year company to a $100 million dollar company," according to CEO Bijan Khosravi. He says that scaling the company will help it reduce costs in manufacturing and will boost its customer support.

Carriers are still buying lots of DWDM gear, Khosravi says, but they're looking toward using ROADMs very soon. He says in the last three months Movaz has seen most carrier networking decisions allowing for ROADMs.

That will benefit a company like Movaz, but it's facing tough competition from Asian equipment makers, which can sell just about anything in a network at a lower cost than their U.S.-based counterparts.

"Price is still the top priority of carriers, so the Chinese do make it challenging," says Heavy Reading chief analyst Scott Clavenna. "Outside the U.S., Huawei and ZTE are everywhere and making it tough on traditional DWDM suppliers."

Khosravi says he's not ready to say what Movaz has decided to do to cut its manufacturing costs: "But we have to think about other countries and outsourcing because we have to reduce the costs."

Competitive cost pressure is one thing. Another is that the price of ROADMs has just been generally too high in past years, a factor that has stunted the technology's adoption. (See ROADMs Roll On and ROADM Overview.)

Meanwhile, Movaz is also benefiting from a general need for DWDM applications in all sorts of networks -- cable, municipal, telecom, enterprise, and federal. Khosravi says about 15 to 16 percent of Movaz's revenues come via its OEM partners, Lucent Technologies Inc. (NYSE: LU) and Motorola Inc. (NYSE: MOT).

In the cable space, Movaz says it has five network wins altogether, including Comcast Corp. (Nasdaq: CMCSA, CMCSK). The company lays claim to 15 enterprise network customers, including some educational institutions and research networks. But telecom carriers make up most of Movaz's 90 customers and the more than 4,000 nodes it claims to have in service.

So does the new money mean Movaz will soon be looking for an exit?

"Everyday it is on my mind how to scale the company more," says Khosravi.

To reach its immediate goal of becoming a $100-plus million company, Movaz may even consider a small acquisition. "To get there, we have to broaden our portfolio, and maybe a quick way to get there is to buy someone. We are discussing all of those strategies."

— Phil Harvey, News Editor, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
Metaswitch's New CEO Martin Lund Discusses His Role

9|2|15   |   11:27   |   (3) comments


Technology industry veteran Martin Lund joins Metaswitch Networks this week as the company's new CEO. In this interview, Lund discusses his new role and the industry's progress with Light Reading CEO Steve Saunders. Lund believes that the industry disruption caused by SDN and NFV is creating opportunities for companies like Metaswitch – network software providers ...
Telecom Innovators Video Showcase
Nominum on Leveraging the Power of DNS to Deliver Superior Subscriber Experiences

9|2|15   |   07:13   |   (0) comments


Nominum CEO Gary Messiana talks about the challenges service providers face in competing for a much more sophisticated customer, a customer that has heightened expectations for more personalized and compelling digital experiences. Providers are focusing their efforts on delivering higher value subscriber services, retaining their existing customers and increasing ...
Between the CEOs
CEO Chat With Jeff Miller, ActiveVideo

8|28|15   |   19:05   |   (0) comments


Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
T-Mobile CEO Plays Data Traffic Cop
Sarah Thomas, Editorial Operations Director, 8/31/2015
CEO Chat With Bill Gates
Steve Saunders, CEO and founder, Light Reading, 8/31/2015
Time to Monetize Cable WiFi
Alan Breznick, Cable/Video Practice Leader, 8/31/2015
Carolina Town Becomes First US 10-Gig City
Mari Silbey, Senior Editor, Cable/Video, 9/3/2015
Eurobites: Anite in OSS Tie-Up With Nokia
Paul Rainford, Assistant Editor, Europe, 9/4/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Technology industry veteran Martin Lund joins Metaswitch Networks this week as the company's new CEO. In this interview, Lund discusses his new role and the industry's progress with Light Reading CEO Steve Saunders. Lund believes that the industry disruption caused by SDN and NFV is creating opportunities for companies like Metaswitch – network software providers with the agility to embrace new technologies quickly and the ability to deliver on substantial projects for global network operators.
The scene: Last Saturday, lunchtime, the interior of a shi-shi-foo-foo eatery in Manhattan's SoHo district.
Cats with Phones
It's a New Age... Click Here
When smartphones replace stuffed animals.