ANDA Raises $10.5M

ANDA Networks announced the closing of an additional $10.5 million round of equity funding

June 6, 2006

2 Min Read

CHICAGO -- ANDA Networks, a late stage venture backed leader in carrier-class Ethernet solutions for fiber and copper-based access networks, announced today the closing of an additional $10.5 million round of equity funding. Given the previous six quarters of profitability, ANDA's new round of funding will be used for global expansion to support new international customer Ethernet deployments. Worldwide shipments will have more than doubled compared with the last half of 2005. The new round's largest investors are: Venrock Associates, Highland Capital Partners, and Crimson Investment. Additionally, 14 other large financial institutions invested in the round.

"With a healthy cash balance, six quarters of profitability, and over 6200+ units shipped and deployed at Tier one carriers, this investment in ANDA Networks is an endorsement of our solid business performance and top position in carrier class metro Ethernet access," said Charles Kenmore, president and CEO of ANDA Networks and Board Member of TIA the parent of Globalcomm. "We were oversubscribed in our funding round because of two key factors: First, our highly cost efficient hybrid silicon valley-China business model resulted in an excess of $25M of annual expense savings and secondly, ANDA is being deployed as the primary Ethernet access supplier for several of the largest wireline and wireless carriers in North America”.

Announced yesterday at Globalcomm, ANDA has certified, type approved, shipped and deployed equipment in 12 new countries outside of ANDA's U.S. and Canadian customer base. Building on the successful ANDA Networks' EtherTone product family in North America, ANDA will further expand its sales, marketing, and support in Europe, Asia Pacific and Latin America. The new round of funding allows ANDA to accelerate its footprint worldwide, as Current Analysis estimates the market for carrier Ethernet Services will grow to over $23B by 2008.

"We believe that ANDA's hybrid silicon valley – China business model is the leading example of a cash-efficient network startup while winning key Tier one customers including Verizon (worldwide), Bell Canada and Rogers Communications for metro Ethernet service deployments” said Tony Sun, Managing General Partner, Venrock Associates. “This business model is an attractive investment because it permits a company to reach profitability at a fraction of the capital required using a traditional U.S. based cost structure”.

ANDA Networks Inc.

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