Paul Brauneis has stepped down in favor of another 'business opportunity,' as an SEC filing puts it
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
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