x
Routing

Axiowave Shuts Down

Core-router startup Axiowave Networks Inc. has closed its doors officially.

Axiowave was placed in receivership by a judge's order entered Dec. 28 in Superior Court for the County of Middlesex, Massachusetts. Attorney Stewart F. Grossman of the firm Looney & Grossman LLP was handed control of Axiowave's assets.

Grossman did not return a call for comment, and Axiowave CEO Mukesh Chatter could not be reached for comment.

Axiowave has not filed for bankruptcy protection. Instead, it appears Axiowave has simply closed down, enlisting Looney & Grossman as a third party to sell off the assets. Grossman's job, as described by court papers, will be to "reduce to money [i.e., sell] the Axiowave assets as expeditiously as possible consistent with the best interests of all creditors and stockholders of Axiowave."

Most of Axiowave's tangible assets will be auctioned off on Jan. 19, according to a letter sent by Grossman to creditors. A date hasn't been set for the sale of Axiowave's intellectual property.

Axiowave did mange to make a sale before shutting down. Separate from the assets auctions, "a certain chip" will be sold to a customer "for $20,000 in accordance with Axiowave's prior agreement," according to court documents.

Axiowave had been struggling, having laid off most of its staff last fall. The company also defaulted on the lease on its 100,000-square-foot facility, a situation revealed when landlord Glenborough Realty Trust Inc. (NYSE: GLB) took the unusual step of calling out Axiowave in a press release (see Headcount: Cutting the Fat (Really) and Axiowave Stung by Rent).

— Craig Matsumoto, Senior Editor, Light Reading

Page 1 / 2   >   >>
bobcat 12/5/2012 | 3:29:49 AM
re: Axiowave Shuts Down
Never would have guessed it.
materialgirl 12/5/2012 | 3:29:48 AM
re: Axiowave Shuts Down Any bets over who goes after their IP? Was there a secret sauce Axiowave had that CSCO or JNPR or even NT or LU might need?
marete 12/5/2012 | 3:29:47 AM
re: Axiowave Shuts Down
Just wondering, did they design ASICs for their switch? If so, how many were there? I am still surprised that with such good management that was successful with Nexabit, they failed to find a buyer this time. I wonder what this team will do in the future.
signmeup 12/5/2012 | 3:29:47 AM
re: Axiowave Shuts Down Not hardly. Axiowave had to be the most overhyped, powerpoint centric company I have seen to date. The only real innovation was the fabric and it sounds like that has already been spoken for.

cyber_techy 12/5/2012 | 3:29:47 AM
re: Axiowave Shuts Down
Any bets over who goes after their IP? Was there a secret sauce Axiowave had that CSCO or JNPR or even NT or LU might need?

Their only IP would be chatter's chatting skills. How else would someone get $41m in 2003 for a core router?
DocGonzo 12/5/2012 | 3:29:44 AM
re: Axiowave Shuts Down "I am still surprised that with such good management that was successful with Nexabit, they failed to find a buyer this time."

Please...good management, successful and Nexabit don't even belong in the same paragraph. Unless perhaps you are using them as the anti-example.

Doc
chook0 12/5/2012 | 3:29:42 AM
re: Axiowave Shuts Down No.

-- Chook
---------------------
Any bets over who goes after their IP? Was there a secret sauce Axiowave had that CSCO or JNPR or even NT or LU might need?
capital-search 12/5/2012 | 3:29:41 AM
re: Axiowave Shuts Down i know the industry space well - they tried to get me to recruit talent and treated me badly - arrogant to a well-deserved hubris - the vulture capitalists will even pass on these bones - yep
spelurker 12/5/2012 | 3:29:40 AM
re: Axiowave Shuts Down > did they design ASICs for their switch?
Well it looks like there was one. Don't know anything about it.

> I am still surprised [...] they failed to find a buyer this time.
The reasons for that are glaringly obvious.
1. Core routing hasn't been that hot a market. The company shouldn't have pursued it in the first place.
2. There was no buyer in the market for this type of company -- CSCO & JNPR don't need anything more, NT, LU, siemens, ericsson... don't want any part of it. Smaller players don't have the money OR the interest. Only Alcatel & Huawei could possibly make a play, and neither has a big enough need.
3. The last deal Chatter, et. al. made was Nexabit, which went for too much money, and was represented as being further along than it really was. This creates a trust barrier.
capital-search 12/5/2012 | 3:29:40 AM
re: Axiowave Shuts Down re: the good mgmt. part - the VP Sales (don't blame him & don't tell 'em i sent ya-) bailed to Leapstone- a well managed co. w. excellent VCs - Axio? as Gregg Allman sang on a '75 album "Can't Lose What You Never Had": (relates also to Cher)
Page 1 / 2   >   >>
HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE