Rumor: Zhone's New Home

Phil Harvey, Editor-in-Chief

December 8, 2009

1 Min Read
Rumor: Zhone's New Home

Is Alcatel-Lucent (NYSE: ALU) about to become Zhone's new landlord?

A tipster writes that a "long-time Zhone employee" said that the company is selling its Oakland, Calif., headquarters location and will soon be leasing space "in Ascend's old buildings, now owned by Alcatel-Lucent."

We'll check on Zhone Technologies Inc. (Nasdaq: ZHNE)'s HQ status shortly. In the meantime, it's a believable tip, given that Zhone is seeing its customer base consolidate as its competitors get stronger, and is expecting operating losses and negative cashflow for the foreseeable future.

The company's latest filings with the Securities and Exchange Commission (SEC) include a very broad-based warning that can't help but fuel such speculation: "In order to meet the Company’s liquidity needs and finance its capital expenditures and working capital needs for the business, the Company may need to raise additional capital through the issuance of debt or equity financing or the sale of assets."

— Phil Harvey, Editor-in-Chief, Light Reading

About the Author(s)

Phil Harvey

Editor-in-Chief, Light Reading

Phil Harvey has been a Light Reading writer and editor for more than 18 years combined. He began his second tour as the site's chief editor in April 2020.

His interest in speed and scale means he often covers optical networking and the foundational technologies powering the modern Internet.

Harvey covered networking, Internet infrastructure and dot-com mania in the late 90s for Silicon Valley magazines like UPSIDE and Red Herring before joining Light Reading (for the first time) in late 2000.

After moving to the Republic of Texas, Harvey spent eight years as a contributing tech writer for D CEO magazine, producing columns about tech advances in everything from supercomputing to cellphone recycling.

Harvey is an avid photographer and camera collector – if you accept that compulsive shopping and "collecting" are the same.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like