Avici CFO Departs

Amid what looks to be a turbulent year, the CFO for Avici Systems Inc. (Nasdaq: AVCI; Frankfurt: BVC7) has stepped down.

Avici announced the departure of Paul F. Brauneis in a Securities and Exchange Commission (SEC) filing May 24, saying he was leaving "to pursue a new business opportunity."

Brauneis's resignation became effective today, although the filing says he'll be available to Avici as a consultant for a while. His interim replacement is T.S. Ramesh, the company's controller.

Core-router vendor Avici appears to be at a major crossroads in its life. The company never gained much traction with service providers, other than the old AT&T Corp. -- which has since been glommed by SBC Communications and renamed AT&T Inc. (NYSE: T)

Avici just couldn't surmount competition from router leaders Cisco Systems Inc. (Nasdaq: CSCO) and Juniper Networks Inc. (NYSE: JNPR), which ship the high-end CRS-1 and T640 boxes, respectively. A partnership with Huawei Technologies Co. Ltd. -- since expired -- didn't rake in the business as expected, nor did an alliance with Nortel Networks Ltd. Early this year, Avici announced staff cuts of 45 percent -- about 135 jobs -- and noted it would look into "strategic alternatives" including a potential sale or merger. (See Avici Downsizes to Survive.)

It's not all doom and gloom. Business from AT&T continues to flow. In April, Avici announced surprisingly good earnings and increased its forecast for AT&T business for the year. (See Avici Soars on Q1 Numbers.)

Still, Avici has had to seek business beyond the telecom realm. For example, last summer Avici notched a deal with Limelight Networks Inc. (Nasdaq: LLNW), which distributes video and games across its own fiber network.

Avici officials could not be reached for comment.

— Craig Matsumoto, Senior Editor, Light Reading

Honestly 12/5/2012 | 3:53:09 AM
re: Avici CFO Departs Hear that Chambers has spent a lot of time with Ivan
twill009 12/5/2012 | 3:53:09 AM
re: Avici CFO Departs Is it possible that the revenue surge that Avici saw in Q1 was a last time buy from AT&T? Does the merger between AT&T/SBC/BellSouth have implications for Avici?

Huawei and Nortel are no longer pushing Avici gear -- I wonder if this company has any future at all.

Any opinions from Light Readers?
Pete Baldwin 12/5/2012 | 3:52:57 AM
re: Avici CFO Departs Ah, well there you go.

It's never a great sign when the CFO leaves a company, but there's a bit less of a sting if he's got another job lined up.
digits 12/5/2012 | 3:52:57 AM
re: Avici CFO Departs Paul Brauneis was just announced as new CFO at VOIP systems firm Canata (aka Brooktrout + Excel).
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