x
Cable/Video

Boston Area Startups Slash Jobs

As evidence that things are getting more and more dire for startups trying to conserve cash in the slowdown, Ellacoya Networks Inc. and Quantum Bridge Communications Inc. each announced a second round of layoffs this morning.

The startup layoff story has become a familiar one these days. Companies once flying high on the hopes of lucrative public offerings are now finding themselves scrambling to close third and fourth rounds of funding with wary venture capitalists. And as customers become harder and harder to find, companies are being forced to sacrifice jobs to cut burn rates.

Ellacoya's layoffs began in May, when the company laid off 50 people, 20 percent of its 250 employees (see Telecom Woes Prompt More Layoffs). Today it announced that it would be cutting another 35 jobs from its roster, bringing its current head count down to about 105, says Matt Burke, a company spokesperson.

“We didn’t think we’d have to do it again,” he says. “It’s a really tough thing to do. It makes me sick to my stomach to think about, but from a business standpoint our board of directors and executive team did what they had to do.”

Ron Sege, the company’s CEO was unavailable for comment, as he was handling issues related to the layoffs, says Burke.

Cuts were made across the entire company, but Burke says that the bulk of jobs were lost in administration. He also says that the company tried to spare as many engineering spots as possible, even though it has completed development of its carrier-class IP services platform, the SGS 44000.

The job cuts were directly related to the company’s ongoing fundraising efforts, according to Burke. Investors in the current round demanded that the company cut its burn rate significantly as a condition for the next round of funding. And reducing head count was one of the most immediate ways to address that issue, he says.

This seems to add up, given Ellacoya’s current product situation. While the company claims to have shipped its flagship product to at least six trial customers, it has not realized revenue on any of these deployments. And with its last round of funding closing back in December of last year, the company should be in need of more cash (see Ellacoya Gets a Blue-Chip Backer). In total, the company had raised over $84 million. Back then, it was pegged as a hot IPO prospect with backing from big names like Goldman Sachs & Co. If and when the company closes this next round of funding, it should have enough cash to get it through another year, says Burke.

“With the current head count, this should sustain us until 2003,” he says. “Raising money is a lot different now. You have to make sure to keep the burn rate down, and we have to meet certain milestones in 2002.”

Ellacoya wasn’t the only New England startup to announce job cuts this morning. One of its neighbors in the metropolitan Boston area, Quantum Bridge, also announced its second round of layoffs. While the company confirmed that there was a workforce reduction, it refused to give details on the number of employees who had been cut -- even declining to specify the current headcount. But sources say that the company has laid off as much as 40 percent of its staff.

"We did have a reduction here today," says Charlie Guyer, oddly uncommunicative director of corporate communications. "But that is all I can really say. We are still doing good things with customers, and we expect to have some good news out about new customers soon."

Quantum Bridge had already laid off a smaller number of employees earlier in the year, says Guyer. But he surprisingly declined to give additional details.

“We’re going through the same thing as everyone else in the industry right now,” he says. “One of the biggest costs is salaries. It’s a matter of being smart in an uncertain economic climate.”

Quantum Bridge, a developer of passive optical networking technology, also had its eye on a big IPO. The company had raised more than $124 million of venture money from big backers like New Enterprise Associates (NEA), Morgan Stanley Dean Witter & Co., and Dain Rauscher Wessels.

It had even filed an S-1 with the Securities and Exchange Commission last year (see Quantum Bridge Aims for IPO). But as the Nasdaq plunged to new lows last spring, the company finally pulled its filing in May (see Quantum Bridge Withdraws IPO). Its executives said the company would refile when the market conditions improved. But so far that hasn’t happened.

Unlike Ellacoya, Quantum Bridge says it is shipping and collecting revenue from six customers, only three of which have been communicated: Comcast Corp. (Nasdaq: CMCSA, CMCSK), a cable operator; Advanced TelCom Group Inc., a California-based competitive local exchange carrier (CLEC); and Sigecom LLC, a utility company (see Quantum Bridge Wins Over Utility). It also claims to have trials going on with several other customers.

— Marguerite Reardon, Senior Editor, Light Reading
http://www.lightreading.com
sinorat 12/4/2012 | 7:25:43 PM
re: Boston Area Startups Slash Jobs And what a fine bunch of chiefs too!
Hey fellas, the company needs some more rented plants. How about some more of those really nice high-back red leather chairs? By the way, I know where you can get some rather nice Mr.Q Urinal Cakes really cheap. There MUST be some more grunts to fire. So, you can afford it. (A-R-R-O-G-A-N-T!!!) What about a truffle hunt after the company pollo outing? What, no lobster this year? Gee that IS too bad.
QB Motto :"even when you aint got it, flaunt it"
Bloody multi-starred, old-nun-slapping-you-in-the-gob ARROGANT!!!!!!

Oh, by the way chaps, the world isn't laughing WITH you! Perhaps you can make pretty Christmas Novilties with all those rolls of fibre?
rotag 12/4/2012 | 7:26:07 PM
re: Boston Area Startups Slash Jobs it's one thing to lay people off and conserve expenditures, it's quite another to lay people off without touching a single director. In a company that's bloated with management.

All chiefs.

my $0.02.
sinorat 12/4/2012 | 7:26:36 PM
re: Boston Area Startups Slash Jobs Free art. Who gives a ****.

As for prospects for future success, if QB does have good stuff (and they REALLY DO, and remember that the cast-aways help to make it so) then the next step is to SELL SOME. Perhaps some of the company's credibility went with the cast-aways. Maybe, the artsy-fartsy decor tells a story of ARROGANCE to prospective buyers. Humility is an asset when your company has few customers, few prospects, a small name, and a questionable (yet is may well come) market. If you build it they MAY NOT come. (And stop blaming Wall Street and the bad economy. Waa Waa I WANT MY MOMMY.) LOOK ACCROSS THE STREET AT THE STEAMING HULK THAT ONCE WAS PICTURETEL. (And they actually sold stuff! Go figure. And when did they start? During the BAD BAD days in the early 90'.)

As for the cast aways, I always thought that only Moe, Larry, and Curly threw away the nut and ate the shells. Damn, you learn something new every day.
tet109 12/4/2012 | 7:26:40 PM
re: Boston Area Startups Slash Jobs Your right Quantum Bridge does have product that work well. From all PON vendor that I research Quantum Bridge have the only product that work in real network. My company maybe deploy PON in 2002 probably and Quantum Bridge can do it.

-Tet
Wired 12/4/2012 | 7:26:42 PM
re: Boston Area Startups Slash Jobs Quantum Bridge does have nice art in the building. But the bad news, for those that like to put others down, it is all produced by employees. Can you believe it. Not only do they have products that work they have art that the company did not have to pay for. Free art. Or were the dinner meals payment.
nlogan 12/4/2012 | 7:26:44 PM
re: Boston Area Startups Slash Jobs It is reassuring to see that so many ex-QB'ers share the same sentiment regarding the incestual practices of the management team. Regarding the art in the lobby - it points out another ugly aspect of QB's downhill slide: The rediculously expensive and excessive tech drive building with it's millions of dollars in architecture, glass railings and unused lab gear.

I wouldn't be suprised to see $150,000 brand new optical scopes up on eBay sometime soon.

"NIB! NEVER OPENED TEKTRONIX SCOPE! NO RESERVE!"

Seller: "AZona" Maybe he needs another story on the poolhouse.
rotag 12/4/2012 | 7:27:30 PM
re: Boston Area Startups Slash Jobs Nope.

Nice to see the artwork is still in the lobby..;-)
pond 12/4/2012 | 7:27:30 PM
re: Boston Area Startups Slash Jobs poor Ted. So bitter.
Vegas in the Valley 12/4/2012 | 7:27:31 PM
re: Boston Area Startups Slash Jobs Good insights, Ted.
sinorat 12/4/2012 | 7:27:36 PM
re: Boston Area Startups Slash Jobs I have friends, good friends. However, if I had hired them, and they were NOT doing the job, they would still be my friends. I'd help to find them employment elsewhere. (None of MY friends are yes-men leaches.) Business is business. A start up is in business TO MAKE MONEY for its shareholders. It is NOT in business to provide a country club for the friends of the senior staff. Period. Loose sight of the money and you're in trouble.

Define good friends. Are these the favorite RUMP SWABS of senior staff? Are these the ones who refuse to recognize that the emperor has no clothes, and to tell him so for his own good? Are these the people who "work" until 6:00 to recieve a free dinner, only to pack it off home at 6:10? What friends!!! C-L-A-S-S-Y.

Friends, in such an enterprise, are those who selflessly work all hours to reach the (money) goal. Friends are those who sweat and toil with little thanks. Most of THOSE people have been RIFfed by QB by now. (Oh it is a ponderous chain that YOU have forged Ebenezer...) Remember, some of these people have more equity (in sweat and blood) than do any of the dingle berrys that cling to "the boys" at QB.

Merry Christmas. (Oh by the way, the bag of cash, is it locked up in a Mr. Q ice sculpture destined for the company Christmas party? Oh, no party? Gee how the smug have fallen.)
PON 12/4/2012 | 7:28:08 PM
re: Boston Area Startups Slash Jobs I totally agree with the comments that some of
you have made. As 'sqa_lead' wrote in Message 229:

Some of these companies are like little "boysGÇÖ clubs". Quantum Bridge is a perfect example. During layoff times, management kept people who were their friends and did not base their decision on competency or skill sets. Upper management at Quantum should really look at people who are in high management positions and see who is fit for the job. They should have another round of layoffs and may be able to save the company by getting rid of people who seem to work long unproductive hours while they are pursuing other personal interests.
Betelgeuse 12/4/2012 | 7:28:23 PM
re: Boston Area Startups Slash Jobs Don't know much about Santera's future, but it looks like most/all of the Sprint deal is going to Sonus

http://finance.yahoo.com/mpson...
netskeptic 12/4/2012 | 7:28:25 PM
re: Boston Area Startups Slash Jobs > Oh they'll certainly cut more people - but they
> WON'T cut:
>
> - Friends of senior staff

Yes, there is a very consistent pattern: given the choice of driving a company under (by keeping their friends around) vs. making big bucks (by firing their friends), senior management invariantly chooses good friends over big bucks.
And the most amazing is that they usually get 100% support of the board.

And some people out there talk about greed.

I would even say that in order for the start-up to succeed senior management HAS TO have really good people as their friends.

Thanks,

Netskeptic
nlogan 12/4/2012 | 7:28:26 PM
re: Boston Area Startups Slash Jobs "Perhaps if they cut the right people" is a dead on analysis of what the problem at QB is.

Oh they'll certainly cut more people - but they WON'T cut:

- Friends of senior staff
- All of the ex-LU upper management that was hired on by.....Other ex-LU upper management

QB's last cut SLICED into their engineering and QA teams HARD, while leaving serveral highly paid operations, dev, sales, IT and remote sales executives still sitting pretty.

Of course, this is nothing new at QB.

I say they go under in 6 months. Nobody's going to by a liability like that without serious repercussions from their shareholders.
jimbo59 12/4/2012 | 7:28:27 PM
re: Boston Area Startups Slash Jobs Need I say more?!

Tony Zona wrote:
"I believe QB will survive. Unfortunately with reduced revenue, and revenue projections for that matter, a company has few options when it comes to preserving money. So the reduction in force is what we often see as a solution.

A reduction in force does not necessarliy mean is company is not doing well, usually it means the company will not hit projected revenue goals and must react in order to survive.

But I think QB will continue to trim headcount and I see someone scooping them up within 9 months"
sinorat 12/4/2012 | 7:28:35 PM
re: Boston Area Startups Slash Jobs Perhaps if they cut the RIGHT people, QB stands a chance. Judging from the rate at which many of the castaways have found jobs, I'd say they have let go some TALENT (read WRONG people).
S-K-A-R-Y!!!! It seems that they are still well into operation Charlie Fox...
GOOD LUCK and GOOD NIGHT (and by the way NO JELOUSY HERE)
PON 12/4/2012 | 7:28:59 PM
re: Boston Area Startups Slash Jobs Question:
Will Quantum Bridge Communications be able to
survive in these times? Speculation is that there are going to be more work-force reductions. Comments/feedback?
_____ 12/4/2012 | 7:28:59 PM
re: Boston Area Startups Slash Jobs I believe QB will survive. Unfortunately with reduced revenue, and revenue projections for that matter, a company has few options when it comes to preserving money. So the reduction in force is what we often see as a solution.

A reduction in force does not necessarliy mean is company is not doing well, usually it means the company will not hit projected revenue goals and must react in order to survive.

But I think QB will continue to trim headcount and I see someone scooping them up within 9 months.
showmethe$ 12/4/2012 | 7:29:19 PM
re: Boston Area Startups Slash Jobs In a previous message, seahorse stated:

"If they don't get a Sprint deal in early December, they will lay off half the company.

The $100M round is not in the bank. It is contingent upon Sales commitments. THEY ARE IN REAL TROUBLE."


Rumor has it that Santera didn't make the short list at Sprint. The unconfirmed word is that Alcatel and Nortel beat them out. Can anyone validate this rumor or provide any input regarding Santera's future?
lucender 12/4/2012 | 7:29:26 PM
re: Boston Area Startups Slash Jobs > Most importantly, I heard that Sushi House closed their downstairs permanently. Hope they're gonna be OK.

But Bamboo is going great guns. I've been there for lunch a couple of times and it's full of LU and former LU/CASC people from Robbins Road.
right_leading 12/4/2012 | 7:30:48 PM
re: Boston Area Startups Slash Jobs
At Sushi House, it's a mix. Some cantonese, some mandarin.
sqa_lead 12/4/2012 | 7:30:51 PM
re: Boston Area Startups Slash Jobs Some of these companies are like little GÇÿboy clubs'. Quantum Bridge is a perfect example. During layoff times, management kept people who were their friends and did not base their decision on competency or skill sets. Upper management at Quantum should really look at people who are in high management positions and see who is fit for the job. They should have another round of layoffs and may be able to save the company by getting rid of people who seem to work long unproductive hours while they are pursuing other personal interests.
right_leading 12/4/2012 | 7:31:12 PM
re: Boston Area Startups Slash Jobs
Most importantly, I heard that Sushi House closed their downstairs permanently. Hope they're gonna be OK.

right_leading 12/4/2012 | 7:31:12 PM
re: Boston Area Startups Slash Jobs

{Big yawn.}


You guys ate too much and became lazy?
Any updates on these companies?

--

What do people think the chances of these companies making it thru 2002 into 2003?

1. Crescent Networks
2. AstralPoint
3. Ellacoya
4. Quarry
5. Appian
6. Coriolis
7. Equipe
8. Quantum Bridge
9. Tenor Networks
10. Gotham Networks
11. Wavesmith Networks
12. Narad Networks
13. PhotonEx

lucender 12/4/2012 | 7:31:20 PM
re: Boston Area Startups Slash Jobs I thought I posted it in this thread, but maybe not. Coriolis laid of 25% on 11/14.
Route495 12/4/2012 | 7:31:21 PM
re: Boston Area Startups Slash Jobs 1. Crescent Networks - Difficult
2. AstralPoint - Difficult
3. Ellacoya - Difficult
4. Quarry - Dont Know
5. Appian - Maybe
6. Coriolis - Maybe
7. Equipe - Maybe
8. Quantum Bridge - Difficult
9. Tenor Networks - Difficult
10. Gotham Networks - Maybe
11. Wavesmith Networks - Maybe
12. Narad Networks - Dont Know
13. PhotonEx - Difficult



edgygirl2001 12/4/2012 | 7:31:25 PM
re: Boston Area Startups Slash Jobs You guys ate too much and became lazy?
Any updates on these companies?

--

What do people think the chances of these companies making it thru 2002 into 2003?

1. Crescent Networks
2. AstralPoint
3. Ellacoya
4. Quarry
5. Appian
6. Coriolis
7. Equipe
8. Quantum Bridge
9. Tenor Networks
10. Gotham Networks
11. Wavesmith Networks
12. Narad Networks
13. PhotonEx


fleshpeddler 12/4/2012 | 7:31:52 PM
re: Boston Area Startups Slash Jobs
i'm confused - exactly which company is the 800 lb gorilla??????

http://www.byteandswitch.com/b...
ZAPPED 12/4/2012 | 7:32:05 PM
re: Boston Area Startups Slash Jobs Sounds like the 800lb. gorilla Santera is in trouble. Did I catch this right? Thought they would have internet offload by summer. Guess this didn't happen? Is the money running out?
lucender 12/4/2012 | 7:32:39 PM
re: Boston Area Startups Slash Jobs > Yeah, that's what people do when they're laid off... they go to Hawaii. Pinhead.

How annoying, I came to LR to escape the lack of decorum at FC. Must be an F3 reject.
yomamma 12/4/2012 | 7:32:39 PM
re: Boston Area Startups Slash Jobs
Yeah, that's what people do when they're laid off... they go to Hawaii. Pinhead.

lucender 12/4/2012 | 7:32:40 PM
re: Boston Area Startups Slash Jobs Current max in MA is $512 per week, plus $25 per dependent. For those keeping score at home, that's around 25% of what you get with a 6-figure salary. But nowadays MA has streamlined it so you can file by phone and they mail the checks to you, so you can actually spend a week or two in Hawaii and still get paid.
broadbandboy 12/4/2012 | 7:32:59 PM
re: Boston Area Startups Slash Jobs Seahorse: "If they don't get a Sprint deal in early December, they will lay off half the company."

Seahorse, what do you know about the Sprint deal? I've heard some things too, and it sounds big...

BBboy
yomamma 12/4/2012 | 7:32:59 PM
re: Boston Area Startups Slash Jobs
>Damn never been there! You sir have bested me!
>If I can see over the wheel I'll turn my
>battleship around and head over!

LMAO!
showmethe$ 12/4/2012 | 7:33:09 PM
re: Boston Area Startups Slash Jobs
"Santera has been laying off 1-2 sales people per week. All CLEC sales force has been let go in the Central Region.

If they don't get a Sprint deal in early December, they will lay off half the company.

The $100M round is not in the bank. It is contingent upon Sales commitments. THEY ARE IN REAL TROUBLE."

.....tell us more (any details?)!!

tiredofyouwhiners 12/4/2012 | 7:33:12 PM
re: Boston Area Startups Slash Jobs >The people doing due diligence on companies read
>LR and they notice when a company announces
>customer trails with the likes of C&W, Comcast,
>Verizon, Genuity, AT&T, Vanion and few more, all
>within one year of the company being founded.

I think that's a simplistic understanding of how "people" execute due diligence. Engineers and gossip mongerers do their due diligence on LR the same way that many day traders got their stock trading tips at parties.

The people that really matter (VCs, underwriters, telecom providers, etc) do their work via industry contacts, good old fashioned investigating, monitoring press releases and TALKING TO SERVICE PROVIDERS.

Don't kid yourself that these people read your gossip posts to get their information.

Oh god ... I think I need to lurk again ... this is too much for a Monday morning.
right_leading 12/4/2012 | 7:33:12 PM
re: Boston Area Startups Slash Jobs The people doing due diligence on companies read LR and they notice when a company announces customer trails with the likes of C&W, Comcast, Verizon, Genuity, AT&T, Vanion and few more, all within one year of the company being founded.

Although I would agree that it seems that's how Lucent did theirs (those guys should be put in jail) I believe it's a tad more rigorous than that.


seahorse 12/4/2012 | 7:33:13 PM
re: Boston Area Startups Slash Jobs "From what I hear the stuff is starting to hit the fan at Santera...lot of people who have left and are looking to leave. I have also heard that some of their sales people have been let go."

Santera has been laying off 1-2 sales people per week. All CLEC sales force has been let go in the Central Region.

If they don't get a Sprint deal in early December, they will lay off half the company.

The $100M round is not in the bank. It is contingent upon Sales commitments. THEY ARE IN REAL TROUBLE.
my2cents 12/4/2012 | 7:33:16 PM
re: Boston Area Startups Slash Jobs The people doing due diligence on companies read LR and they notice when a company announces customer trails with the likes of C&W, Comcast, Verizon, Genuity, AT&T, Vanion and few more, all within one year of the company being founded.
ZAPPED 12/4/2012 | 7:33:17 PM
re: Boston Area Startups Slash Jobs And still testing
katch 22 12/4/2012 | 7:33:21 PM
re: Boston Area Startups Slash Jobs <font color="#FF0000" face="Verdana" size="4">more testing</font>
katch 22 12/4/2012 | 7:33:21 PM
re: Boston Area Startups Slash Jobs just testing
ZAPPED 12/4/2012 | 7:33:22 PM
re: Boston Area Startups Slash Jobs Another one bytes the dust.The domino effect I think. whose next?
opticaltalent 12/4/2012 | 7:33:35 PM
re: Boston Area Startups Slash Jobs
From what I hear the stuff is starting to hit the fan at Santera...lot of people who have left and are looking to leave. I have also heard that some of their sales people have been let go.

Doesn't look to promising for Santera right now.
showmethe$ 12/4/2012 | 7:33:36 PM
re: Boston Area Startups Slash Jobs Yeah, I heard they laid off Sales, Marketing, OP's, Engineering, got the Engineer's spouses fired from their jobs, sold the foosball table and stiffed the pizza guy!!

Anyone have any REAL info. I admit that I don't.
showmethe$ 12/4/2012 | 7:33:36 PM
re: Boston Area Startups Slash Jobs
seahorse 12/4/2012 | 7:33:40 PM
re: Boston Area Startups Slash Jobs "Heard that Santera just laid off their CLEC
sales force. Does anyone have any info on this?
"

I heard more than the Sales force was getting laid off. They are in trouble .... no sales with a high burn rate.
uje 12/4/2012 | 7:33:42 PM
re: Boston Area Startups Slash Jobs Heard that Santera just laid off their CLEC
sales force. Does anyone have any info on this?
I thought they just raised 100 Million according to articles published by Lightreading.
UncleLeo 12/4/2012 | 7:33:44 PM
re: Boston Area Startups Slash Jobs
Ellacoya has more dead bodies than Hopkinton.
ZAPPED 12/4/2012 | 7:33:48 PM
re: Boston Area Startups Slash Jobs Just to add to right_leading's statements. Wasn't Monmouth Cty. NJ listed by Money Magazines top 3 ( yes top 3 best places) to live in the USA a few years ago??? This half inch stud person must be from the land of fruit, flakes, and nuts!
ZAPPED 12/4/2012 | 7:33:48 PM
re: Boston Area Startups Slash Jobs Unemployment varies from state to state.
Like ______ said, you have to check with your Dept. of labor, they probably have a web site.
jsailor 12/4/2012 | 7:33:49 PM
re: Boston Area Startups Slash Jobs
Not that it matters for startups that are going out of business, but the implications of layoffs for the company is that 3 years later they pay the government a higher percentage for the unemployment pool. Hence big companies find it favorable to incent people to leave instead of executing layoffs.
right_leading 12/4/2012 | 7:33:51 PM
re: Boston Area Startups Slash Jobs
>I think WSN is generating all this hype in an
>attempt to attract attention and try to get
>acquired.

Yeah, that's how it happens... the people doing due diligence on companies read LR, they see engineers bashing each other's companies and then make decisions based on hype and crapola.
right_leading 12/4/2012 | 7:33:51 PM
re: Boston Area Startups Slash Jobs >Author: Half-Inch Stud Number: 192
>Subject: Re: NJ startup update
>Date: 11/15/2001 >12:12:51 PM

>Yea, I have a thought:

>Who really WANTS to live in NJ?


Actually most of NJ (like most of most other states) is a beutiful place to live and extremely convenient to cultural areas and events. Your perpetuating an old stereotype from the 70's due to the first sight and smell as you head into NJ over the bridges being that of slaughterhouses and refinaries.

_____ 12/4/2012 | 7:33:54 PM
re: Boston Area Startups Slash Jobs You remployer pays an unemployment premium and it is deducted from seach payroll.

So if you get let go, the company does not pay the amount to the govt- the amount is paid out of the unemployment pool you employer pays into like every other company in your state.

And if you collect, you are not collecting the same amount as your paycheck. I have never collected unemployment so I'm not sure on the amount.

And if your employer goes out of business you can still collect unemployment because the money is taken from the unemployment "pool".
But remember, there are criteria for collecting unemployment. Check with your state department of labor.
go 12/4/2012 | 7:34:01 PM
re: Boston Area Startups Slash Jobs can someone here shed light on what is the implication of laying-off workers on the company? a friend told me that if I was to be laid-off, the gov. would pay unemployment insurance to me, but charge my old company for the amount. This doesn't sound right to me, especially if the co. died, who would the gov. charge then ?

yes, things like this keep me up late at night. :) 'preciate the helps.

thanks,

go
Route495 12/4/2012 | 7:34:09 PM
re: Boston Area Startups Slash Jobs I think WSN is generating all this hype in an attempt to attract attention and try to get acquired.
frickfrack 12/4/2012 | 7:34:10 PM
re: Boston Area Startups Slash Jobs They just closed on $25M funding. Not bad for a company that after 4 years, has (in Ellacoya's own words) just 6 "non-revenue" customers. Even the "non-revenue" customers have returned some of the units, they are so good.

Word on the street is the 25M is to shore things up, slim down, and sell it off. I can't imagine anyone would be brainless enough to buy it, but hey, someone coughed up $25M for a 3rd round, so who knows?
Half-Inch Stud 12/4/2012 | 7:34:12 PM
re: Boston Area Startups Slash Jobs Yea, I have a thought:

Who really WANTS to live in NJ?
opticalarchitech 12/4/2012 | 7:34:14 PM
re: Boston Area Startups Slash Jobs What's latest on word on Ellacoya, haven't seen or heard much lately. Will they make it? How is third round going? Any info much appreciated!
exit105 12/4/2012 | 7:34:15 PM
re: Boston Area Startups Slash Jobs I agree there have been some spectacular failures in NJ like Tachion, Coree, CyberPath but there are plenty of smaller companies still going in the Eatontown area like Issanni, Quintum, Jedai, not to mention Tellium which is a reasonable success.
ZAPPED 12/4/2012 | 7:34:19 PM
re: Boston Area Startups Slash Jobs Not to upset other areas around the country, but something here could apply. Took my own drive around at lunch time, this is an unbiased opinion (most notably Industrial Way West in Eatontown NJ). JDSUniphase parking lot crowded, onward westbound, Village Networks, about 40 cars, weak maybe, but hardly closed. TYCOM still going strong. Spirent, I here difficult times but surviving. Had lunch at the Wendy's across from Terraworx, parking lot full, although I here they are not hiring.

The good news, the stock market SEEMS to be making some kind of comeback? But I here there is somewhere around $trillion dollars in savings, bonds, CD's, and money markets making 2+% which is dog crap waiting for a sign to bust loose.
Any thoughts?
mu-law 12/4/2012 | 7:34:23 PM
re: Boston Area Startups Slash Jobs Ashram, I guess it is safe to assume you are not a switch guy... these are not segment competitors for taqua. Also, your def'n of "stronger" is pretty creative.

The surprise in all of this is that taqua ran as well as it did with so much fat. Even if the can't get their act together, there aren't many candidates to take their place in that sparse segment. Look for capital to flow toward this void in FY 02

"Heard they laid off about 80 people. Couldn't compete with stronger companies in the space (Sonus, Telica, Convergent). No suprise."
realdeal 12/4/2012 | 7:34:23 PM
re: Boston Area Startups Slash Jobs I am the master of my own domain and an independent marketeer, part time race car driver, sought after 3rd shift janitor, expert donut maker, full scale suspension bridge builder, black and white tv technician (licensed), hobbyist, camera operator at Jets games, ace at making plants greener, coin collector, tax auditor, piano lobbyist, and matchbook collector.

Don't have time to work at a start up or a larger company for that matter.
seen_the_light 12/4/2012 | 7:34:24 PM
re: Boston Area Startups Slash Jobs
Mr. Realdeal -- you sound like Equipe's version of SilentMariner!

seen_the_light 12/4/2012 | 7:34:25 PM
re: Boston Area Startups Slash Jobs >Author: edgygirl2001 Number: 176
>Subject: Re: WAVESMITH will join deadpool ..
>Date: 11/14/2001 11:04:46 AM

>Are you refering to Ironbridge?

That's just sad.

Ummm... no sweety, they just provided machinery at their fire sale.

I was referring to FC's place before Airvana.
lu-alum 12/4/2012 | 7:34:25 PM
re: Boston Area Startups Slash Jobs "Since MJ has a lot of credibility with the major carriers..."

That's true, and the Wizards are lucky to have him back!
showmethe$ 12/4/2012 | 7:34:27 PM
re: Boston Area Startups Slash Jobs Doors open or closed, they're done. When you're looking for money with nothing left, you're screwed
lucender 12/4/2012 | 7:34:29 PM
re: Boston Area Startups Slash Jobs > Are you saying that Customer Engineering is the same as Customer Support?

Actually, I don't know what the full details of the structure are. Since MJ has a lot of credibility with the major carriers, they are probably going to organize CE/CS around him.
lucender 12/4/2012 | 7:34:30 PM
re: Boston Area Startups Slash Jobs Layoff today, supposedly about 25%. Probably wanted more than $32M in the last round.
tet109 12/4/2012 | 7:34:36 PM
re: Boston Area Startups Slash Jobs Equipe has no customer or beta so why they need customer support. They need to get product and stop delay. Most Engineering will probably try to support product for now.

-Tet
_____ 12/4/2012 | 7:34:37 PM
re: Boston Area Startups Slash Jobs Chance favors the prepared mind.
crossconnect 12/4/2012 | 7:34:37 PM
re: Boston Area Startups Slash Jobs Lucender,
Are you saying that Customer Engineering is the same as Customer Support? It's not apparent when viewing the Equipe web page. In fact, my curiosity arose when I saw so many dirs and no VP of Sales or any CS. Perhaps they have their own recipe but it is not a conventional start-up one.
lucender 12/4/2012 | 7:34:38 PM
re: Boston Area Startups Slash Jobs > Equipe's strategy in the customer interface areas is a mystery.

Their strategy is to have hired someone to run Customer Engineering whom all the big carriers already know and love.

Re: the recipe for Customer Engineering. You forgot the rocks. A friend of mine in techsupport always said our customers were about as smart as a box of rocks.
diag_eng 12/4/2012 | 7:34:40 PM
re: Boston Area Startups Slash Jobs Absorutery!
edgygirl2001 12/4/2012 | 7:34:41 PM
re: Boston Area Startups Slash Jobs Are you refering to Ironbridge?

>There's no doubt that WSN got the better of the
>Westford bunch (thanks to the timely and very
>premature failure of another startup they were at).
trixie 12/4/2012 | 7:34:41 PM
re: Boston Area Startups Slash Jobs "Not sure about the parking lot being empty but I did hear that Tycom was discontinuing the funding to TerraWorx which has cause some panic to the TerraWorx's employees... If I have heard wrong I would be interested in hearing what is going on over there... Any reliable news?"


I've heard the same, from some folks who still have ties at TyCom. Terraworx is soon to be terra toast...funding is running out.
trixie 12/4/2012 | 7:34:42 PM
re: Boston Area Startups Slash Jobs "Good marketing team does bring in lot of tasters.
So what is better, good marketing team or good cooks?"


Ah, grasshopper,

you are starting to get it-

You need good marketers to get customers to the table, but you also need good cooks to keep them coming back.

It's not just about upper management in these satartups- everybody needs to contribute to the good of the company.

crossconnect 12/4/2012 | 7:34:47 PM
re: Boston Area Startups Slash Jobs Very interesting (but stupid?)
Equipe's strategy in the customer interface areas is a mystery.
realdeal 12/4/2012 | 7:34:49 PM
re: Boston Area Startups Slash Jobs Seen_the_light:

I guess the Macaroni guy will fit in well with the rest of the mgt team seeing that NONE have ever designed, developed, manufactured, sold, deployed, or supported a carrier class product.

The fore guys were ENTERPRISE only. And could never sell into the carriers. All the good Fore guys left a long, long time ago to another PA edge box start up.
MKTG_Hack 12/4/2012 | 7:34:50 PM
re: Boston Area Startups Slash Jobs The CS piece is being handled by the Professional Services guy. OTJ training.
seen_the_light 12/4/2012 | 7:34:51 PM
re: Boston Area Startups Slash Jobs
>However, their sales and customer service
>capabilities are questionable. Have they hired a
>VP of Sales yet? A Dir of CS? And what the heck
>is CUstomer Engineering? DOes anybody really
>know?

Customer Engineering is the science of designing and building your own customer. It's a simple recipe: 1 cup gullibility, 2 cups of equity, 869 pounds of crap in a box and whole buncha smoke.

Add water, makes it own sauce.
seen_the_light 12/4/2012 | 7:34:52 PM
re: Boston Area Startups Slash Jobs >I think the discussion was about WS claim of
>hiring "la creme de la creme" of engineering
>talent in early 2000 when it was very hard to
>hire *any* good engineer.

>Hiring VP of Manufacturing is not a big deal
>nowadays as there are many available...

There's no doubt that WSN got the better of the Westford bunch (thanks to the timely and very premature failure of another startup they were at). They also have a few excellent engineers from New Oak and some other places who followed people they respect.

Agreed, hiring a VP of Manufacturing isn't that hard I imagine. However, your lack of picking up on the not-so-subtle implications of getting one from Marconi who has ATM experience at Fore just makes you look uninformed or inexperienced in these matters.
Route495 12/4/2012 | 7:35:02 PM
re: Boston Area Startups Slash Jobs I think the discussion was about WS claim of hiring "la creme de la creme" of engineering talent in early 2000 when it was very hard to hire *any* good engineer.

Hiring VP of Manufacturing is not a big deal nowadays as there are many available...


> Well, they seem to be hiring pretty well...

http://www.nwfusion.com/edge/n...
crossconnect 12/4/2012 | 7:35:04 PM
re: Boston Area Startups Slash Jobs Most people would agree that Equipe has good engineering talent. However, their sales and customer service capabilities are questionable. Have they hired a VP of Sales yet? A Dir of CS? And what the heck is CUstomer Engineering? DOes anybody really know?
lu-alum 12/4/2012 | 7:35:06 PM
re: Boston Area Startups Slash Jobs Well, they seem to be hiring pretty well...

http://www.nwfusion.com/edge/n...
telecomgal 12/4/2012 | 7:35:07 PM
re: Boston Area Startups Slash Jobs Well, you seem to be misinformed about your neighbor Village Networks. They did not layoff 90% and they have not closed the doors. Perhaps, those who say they have sources need to check them.

Village does have a working product, a shippable product and although they have downsized due to the economy, they are still alive.

telecomgal
realdeal 12/4/2012 | 7:35:09 PM
re: Boston Area Startups Slash Jobs "As far as I can remember, it was really tough to hire good engineering talent in early 2000, however I believe Equipe was founded much earlier."

Equipe made it really tough for other companies to hire good engineering talent because Equipe hired most of the good engineering talent between 1999 and 2001.

crossconnect 12/4/2012 | 7:35:11 PM
re: Boston Area Startups Slash Jobs Wavesmut,

Those are awfully strong words. Are you by any chance employed in a company that competes with WaveSmith?
edgygirl2001 12/4/2012 | 7:35:11 PM
re: Boston Area Startups Slash Jobs As far as I can remember, it was really tough to hire good engineering talent in early 2000, however I believe Equipe was founded much earlier.

>These two have "la creme de la creme" of the >engineering talent from numerous 495 companies.

ashram 12/4/2012 | 7:35:12 PM
re: Boston Area Startups Slash Jobs Doors are still open last I heard. But need to raise cash or find buyer quickly. Does anyone want a small TDM switch when there are many big and cheap packet switches available?
tet109 12/4/2012 | 7:35:13 PM
re: Boston Area Startups Slash Jobs These two have "la creme de la creme" of the engineering talent from numerous 495 companies. Their product strategies are well thought out - if they do what they say they are going to do they will both make *lots* of money
--------
What are you talking about. You think ATM switch is good product strategy today. Are now companies going to throw out current ATM switch for WS or Equipe. Maybe two years ago. Doesn't good engineers deliver product in time. Equipe has been delayed too much and not even in real Beta. WS same thing.

-Tet
uje 12/4/2012 | 7:35:16 PM
re: Boston Area Startups Slash Jobs Laid off 80, how many are left? I heard they
closed their doors, I guess thats not true?
ZAPPED 12/4/2012 | 7:35:16 PM
re: Boston Area Startups Slash Jobs As far as Terraworx goes my info only goes back to Sept. However I knew some people over there and they seemed confident that funding would continue.
Maybe things have changed since then, I don't know? Can't help you here.
ashram 12/4/2012 | 7:35:17 PM
re: Boston Area Startups Slash Jobs Heard they laid off about 80 people. Couldn't compete with stronger companies in the space (Sonus, Telica, Convergent). No suprise.
triacs 12/4/2012 | 7:35:22 PM
re: Boston Area Startups Slash Jobs Anyone hear anything about layoffs at Taqua today?
UncleLeo 12/4/2012 | 7:35:25 PM
re: Boston Area Startups Slash Jobs
Hey Metal, that's pretty Heavy, but I don't see any common investors between the two. Unless you know something about Equipe's (what DOES that name mean anyway?) or Wavesmith's next rounds that we don't?
Metal 12/4/2012 | 7:35:29 PM
re: Boston Area Startups Slash Jobs Wavesmut, I agree that there's alot of BS on this board, as well as in press releases.

But I can tell you that we invested in Wavesmith as well as Equipe in no small part because of the strength of their engineering teams. These two have "la creme de la creme" of the engineering talent from numerous 495 companies. Their product strategies are well thought out - if they do what they say they are going to do they will both make *lots* of money. You can't say that about many startups, as the market may or may not pan out for them. The multiservice edge switch market is growing >40% a year, and the incumbent (Lucent) is faltering badly and in my opinion will not recover.

So while you may be right that there's alot of BS and "forward-looking" statements out there, I believe these two will survive and prosper. We expect revenue from both in the next 2 quarters.
John Casper 12/4/2012 | 7:35:36 PM
re: Boston Area Startups Slash Jobs Hi guys,

Don't bad mouth the companies that are in trouble rather discuss reasons why these companies are in trouble and what lessons can be learned from these failures.

Many start ups are in trouble and there are some possible class of reasons:

1. Team that failed to deliver - the guys who started the company didn't know what they wanted do. In some cases, they had a perfectly good idea, but couldn't built a team that could deliver. Too many start ups didn't help here as talent got divided in too many places.

I will leave others to put the names of the companies that fall in this class.

Hint: I will put all companies that couldn't finish the product.

2. Market that failed to materialize - Some teams did exceute well. The management did just the right things but the market that was assumed wasn't there. Still, the companies are in trouble. They have the product ready to ship, but the market is not there for this kind of product. It never was and there was miscalculation or misjudgement on part of the managemet/investor.


I will let you guy come with names or the companies that fall in this categories.

Hint: I will put all companies that were working for product meant mainly for CLECs or on all optical vision for milk and bread delivery to my home, or MPLS signaled shoe polish machines.

3. Bad Timing: managment knew what they wanted to do, teams exceuted well. Market exists but the current slowdown is affecting them since carriers are not yet ready to buy. It is being in a wrong place at the wrong time. These companies would have been successful if there was not a market freeze on spending, and perhaps would survive if they could last this winter freeze using the cash that they have in their hands.

Hint: I would put those companies that have a reasonable product in an otherwise existing market segment - the companies that are not creating a totally new hype based visions but providing a solution to a widely needed aplication (e.g., VPNs).

Have fun,

John
_____ 12/4/2012 | 7:35:39 PM
re: Boston Area Startups Slash Jobs Hey Wavesmut/coward:
(scroll down)









































































































































































































That's about all you deserve from me.
LightCatcher_NJ 12/4/2012 | 7:35:41 PM
re: Boston Area Startups Slash Jobs Not sure about the parking lot being empty but I did hear that Tycom was discontinuing the funding to TerraWorx which has cause some panic to the TerraWorx's employees... If I have heard wrong I would be interested in hearing what is going on over there... Any reliable news?
yomama 12/4/2012 | 7:35:41 PM
re: Boston Area Startups Slash Jobs Hey wavesmut if BS was electricity you would be a power house!!! no only kidding!! You're probably a good guy... I do not belong to an Acton based startup, but I do know people at WS, Equipe and Tenor...so YOU my friend are WRONG. Have a nice day...


Yomama
big daddy 12/4/2012 | 7:35:45 PM
re: Boston Area Startups Slash Jobs k_j will be here all week...
k_j 12/4/2012 | 7:35:47 PM
re: Boston Area Startups Slash Jobs All of these companies should merge.

Crestracoyappiolisequitumnortham Networks.

Market cap 75 Mil.
UncleLeo 12/4/2012 | 7:35:47 PM
re: Boston Area Startups Slash Jobs
1. Crescent - French pastry?
2. Astral Point - Done.
3. Ellacoya -
4. Quarry - No way
5. Appian - Turning Japanese
6. Coriolis - Doing great
7. Equipe - Antidentites
8. Quantum Bridge - Working on a loan from CEO.
9. Tenor - Change the name to Soprano,
the fat ladies singing...
10. Gotham - Batman and Robin couldn't\
save this one.

wavesmut 12/4/2012 | 7:35:48 PM
re: Boston Area Startups Slash Jobs router_manus, dont worry Wavesmith will soon join the deadpool.

==================================================

For the people who dont know, most of the following aliases are employees (or wellwishers) of an Acton based startup who like to think they are making "Waves" :

yomama,broadbandboy,_____,RouteThis,right_leading

They lurk around all day on LR and spread FUD against the competition. They start jumping up and down when one of their competitor is in trouble. One of them came up with this deadpool list (which not surprisingly, does not include their company). I agree some of the companies in that list wont make it. But remember guys, you are in the same boat. Also those who live in glass houses should not throw rocks at others.


wavesmut 12/4/2012 | 7:35:48 PM
re: Boston Area Startups Slash Jobs Wavesmith will join the deadpool in another six months. This is the biggest BS startup around.
The marketing/sales team thinks nothing about BS to get publicity. They started spreading stories about customer trails at Comcast, C&W, Genuity etc. in May when they were just going through the RFP process. They managed to get a 2nd round helped by the hype. Actually one investor backed out at the last minute leaving them short by 5 million for the 2nd round. They still went ahead and announced 31 million 2nd round when only 25 mil was closed.

The investors are now wiser and wont give any more money. Potential customer's are also pissed of because WS management keeps spreading rumours about imaginaary trails on places like lightreading.

The marketing/sales team has bullshted its way into couple of trails but they get kicked out a couple of days after the box is powered on and the customer realizes that it is nothing but an
unstable small box with only basic ATM functionality.

Inspite of all the hype they keep laying of people to reduce the burn rate as they know they will have a hard time raising a thrid round
right_leading 12/4/2012 | 7:35:54 PM
re: Boston Area Startups Slash Jobs I'm confused, what does this have to do with Asian cooking?
ZAPPED 12/4/2012 | 7:35:55 PM
re: Boston Area Startups Slash Jobs lightcreeping
I don't know if your post was in response to mine?
If not disregard this post. If it is then I don't think you know what your talking about. Terraworx shares an office building with several other companies, if the parking lot is empty did they all go out of business in the last few weeks? Sounds like an unwarranted rumor to me.
lightcreeping 12/4/2012 | 7:35:56 PM
re: Boston Area Startups Slash Jobs Still hiring? No. well unless they are hiring someone to sweep the parking lot... I drove by last week and it was empty.
ZAPPED 12/4/2012 | 7:35:58 PM
re: Boston Area Startups Slash Jobs To anyone still bent on telecom, there is a possibility that a company in Shrewsbury NJ (just outside of Red Bank) named Terraworx might hire in the near future. They are well funded by TYCOM and none of that VC crap.
They are into long haul land based fiber, using their expertise in trans-ocean fiber to accomplish this task. Again just my 2 cents. Web Site www.terraworx.com
RJ-45 12/4/2012 | 7:35:58 PM
re: Boston Area Startups Slash Jobs "Internet Photonics seem to be holding on for now (despite the layoffs a few months ago) but they are definitely not in a "ramp-up mode" (but then again, who is) IP has some good people but when the market opens not sure those "people" will stay. Hate to say, IP may look good to people but they're not going to get anywhere if they're looking for employment."

Hey, LightCatcher, say something more, please...
Rumor 12/4/2012 | 7:35:59 PM
re: Boston Area Startups Slash Jobs Didn't TyCom layoff? BTW, how is V/N doing?
UncleLeo 12/4/2012 | 7:36:04 PM
re: Boston Area Startups Slash Jobs Gotta go for the green curry man! Ask for it a$$ burning spicy.

Better follow it up with ice cream.
UncleLeo 12/4/2012 | 7:36:05 PM
re: Boston Area Startups Slash Jobs Thai Chili will fail because it doesn't have Fast MIM.

right_leading 12/4/2012 | 7:36:05 PM
re: Boston Area Startups Slash Jobs
Bendyourown is OK, but their Pad Thai is bogus.
UncleLeo 12/4/2012 | 7:36:06 PM
re: Boston Area Startups Slash Jobs Damn never been there! You sir have bested me! If I can see over the wheel I'll turn my battleship around and head over!

Route495 12/4/2012 | 7:36:06 PM
re: Boston Area Startups Slash Jobs Yeah! Thai Chilli kicks Benjarong a$$ any day.
--
"But I think that to Tom Yum soup at Benjarong is unbeatable."
UncleLeo 12/4/2012 | 7:36:08 PM
re: Boston Area Startups Slash Jobs "But seriously, the H&S soup at Bamboo is excellent, looking forward to my next trip there."

Really? I didn't care for it. But I think that to Tom Yum soup at Benjarong is unbeatable.
lucender 12/4/2012 | 7:36:11 PM
re: Boston Area Startups Slash Jobs > "Bamboo just has a good marketing team. What engineer is going to buy sushi from a startup?!"

Right, you should only buy sushi that has all the Telcordia compliance certificates (obtained at a nominal fee of $16M), and the sushi has to still be raw after being hit by lightning (NEBS-3). A modest sushi platter costs $25,137.

But seriously, the H&S soup at Bamboo is excellent, looking forward to my next trip there.
Route495 12/4/2012 | 7:36:16 PM
re: Boston Area Startups Slash Jobs And dont forget Ginger Court, they are not really gone as Bamboo wished they were.
Route495 12/4/2012 | 7:36:18 PM
re: Boston Area Startups Slash Jobs Good marketing team does bring in lot of tasters.
So what is better, good marketing team or good cooks?

--
"Bamboo just has a good marketing team. What engineer is going to buy sushi from a startup?!"

right_leading 12/4/2012 | 7:36:20 PM
re: Boston Area Startups Slash Jobs
>Tiki-Lau has the installed base and people won't >just rip that out!

It's awfully quiet over there.
MKTG_Hack 12/4/2012 | 7:36:20 PM
re: Boston Area Startups Slash Jobs Someone asked why I thought Jedai had a chance:

First of all, they announced their first product on schedule which is always a good sign. The other day they also annouced their product roadmap for an end-to-end solution that makes sense to me. Again, I'm impressed that they seem to have thought things thru and are focused on engineering a solid product.

Second, Jedai is focused on the MSO market rather than the overcrowded and uninterested telecom space. Good choice in my book, especially since many MSOs have been sitting out this year waiting for the new standards to be approved and new gear to match these standards. Jedai is there.

Third, if you look at their board of directors, several of them come from the major cable companies instead of filling it up with cronies and buddies only interested in the IPO. To me, this says that they have been designing product to potential customer spec rather than engineering some extremely cool technology and then trying to shove it down someone's throat. Smart.

I had a two hour call with one of their execs a while ago. The guy struck me as sharp, focused and humane (as opposed to all the A--holes I read about here). I didn't get the job and probably won't because I am first and foremost a MKTG Hack ( a wizard on my good days) with only a 6" deep understanding of the technology. This guy wanted one who could dive down into the deep water with an engineer. Frankly, this may be the only weakness they have but - in all honesty - it is a small one.

A MKTG perspective is very different from an engineering perspective when evaluating a company's chances. A great product is critical, but I also look at the human factors - do I want to do business with these guys? Are they trustworthy? Is this a science project or something that is really going to help me (the customer)? How complete is the solution? How easy is it to implement? What do I have to throw out and what can I keep? On these terms, Jedai looks prety hot.
UncleLeo 12/4/2012 | 7:36:20 PM
re: Boston Area Startups Slash Jobs lu-alum is an employee of "Yank-Me" River trying to exploit gossip. The core Chinese Food market is dead, it's going to transition to Thai and be surrounded by Sushi at the edge. The dark horse here is Sushi House hai!

Who is this? Uncle Leo?!

MKTG_Hack 12/4/2012 | 7:36:21 PM
re: Boston Area Startups Slash Jobs OK
I DO NOT work for the company I'm commenting on. In fact, I don't work for ANY company right now (see question 3 below!)

I DO NOT work for one of the "Top Ten" (See question 1 above)

I AM angry right now (see questions 1 and 2 above)
lu-alum 12/4/2012 | 7:36:21 PM
re: Boston Area Startups Slash Jobs I heard Sichuan Pavillion is being bridged by their existing VCs until they can close an acquisition deal with Aku-Aku or raise another round of funding.

Bamboo just has a good marketing team. What engineer is going to buy sushi from a startup?!

Tiki-Lau has the installed base and people won't just rip that out!
mr telephone 12/4/2012 | 7:36:21 PM
re: Boston Area Startups Slash Jobs mrtelecom,
It's A-HOLES like you who start false rumors,I work for V/N and we did not lay off 90% of our staff. If you can see our parking lot that means you work for Tycom, and if you spend any more time looking out the window, you will be part of thier next RIF... I suggest you spend more time doing your job and less time commenting on what you don't know, or maybe your company will be the next "yesterdays news"
LightYears 12/4/2012 | 7:36:22 PM
re: Boston Area Startups Slash Jobs I'm not sure why "akulla" lumped Tachion and Village together when referencing Bell Labs PhD/CEO. True, Village's founder and CEO holds a PhD and was a dept. head at Bell Labs. But Tachion's CEO was Jeff Matros and he had nothing to do with Bell Labs nor does he hold a PhD. Some of the founders of Tachion worked at Bell Labs but by no means were they "elite" researchers, most were 2nd rate hackers.

As for Tellium, the executive team's bios indicate most are from AT&T/Lucent. Not sure what akulla means by "outsider executive team".
LightCatcher_NJ 12/4/2012 | 7:36:25 PM
re: Boston Area Startups Slash Jobs Internet Photonics seem to be holding on for now (despite the layoffs a few months ago) but they are definitely not in a "ramp-up mode" (but then again, who is) IP has some good people but when the market opens not sure those "people" will stay. Hate to say, IP may look good to people but they're not going to get anywhere if they're looking for employment.
LightCatcher_NJ 12/4/2012 | 7:36:26 PM
re: Boston Area Startups Slash Jobs well said!
LightCatcher_NJ 12/4/2012 | 7:36:26 PM
re: Boston Area Startups Slash Jobs I know Photuris is laying low right now but I did not hear of layoffs are you sure about this and when did it happen?
cipher 12/4/2012 | 7:36:26 PM
re: Boston Area Startups Slash Jobs As an independent observe who has spoken with the sales teams from both companies, I'd bet heavy on Appian.
akulla 12/4/2012 | 7:36:27 PM
re: Boston Area Startups Slash Jobs I disagree in the case of NJ companies. It not about burn rate but viability! I think more companies with no viable buisness have to go along with the impending carrier consolidation before thingsd get better.

Most of these current "Silicon Parkway" CEO"s/Bell Lab PhD's (let alone product) ever got out of the lab their entire career at Holmdel! Why would it be any different down the road in Eatontown?

It seems we had a spate of funding of ex Bell labs PhD/CEO types 12-14 months ago. Most have not been able to move much beyond a power point presentation some 30-60 Million dollars later! Tachion was the first and biggest to date, I am afraid it wount be the last. Village seemed to have had the same high flier profile in L/R, Red Herring one to watch buzz last year. Now its gone quiet for months, with rumored layoffs. Odds are it will be the next "Tachion" .

The one notable exception was Tellium. They seemed to escape the curse by hiring an outsider executive team with some buisness savy instead of leaving the "mad scientists" with a dollar and a dream at the helm for too long.

I think we will see many more "crashes" and "spin outs" on the "Silicon Parkway", and that it will turn out to be an expensive piece of road to the investors who missed the dangerous curves up around exit 109!
Cubby 12/4/2012 | 7:36:30 PM
re: Boston Area Startups Slash Jobs Conserving cash is warranted until the market improves. Expect some improvement once carrier cosolidation occurs.
Cubby 12/4/2012 | 7:36:31 PM
re: Boston Area Startups Slash Jobs What does rumor say??
Cubby 12/4/2012 | 7:36:32 PM
re: Boston Area Startups Slash Jobs The Lonestar resturant parking lot is empty .
right_leading 12/4/2012 | 7:36:32 PM
re: Boston Area Startups Slash Jobs >Author: Cromwell Number: 102
>Subject: Re: NJ STARTUP DEATH TOLL Date: >11/8/2001 11:49:04 AM

>Who's parking lot is empty?

Schezuan Pavillion's. Bamboo is eating thier lunch (now THAT'S a double entendre, au contrary).
haley 12/4/2012 | 7:36:32 PM
re: Boston Area Startups Slash Jobs mrtelecom, how DID you get so knowledgeable?
vapa 12/4/2012 | 7:36:33 PM
re: Boston Area Startups Slash Jobs From mrtelecom's post, it seems like he is not so good with English.
mrtelecom 12/4/2012 | 7:36:33 PM
re: Boston Area Startups Slash Jobs don't worry light reading will be releasing an article about alphion and village soon. I am sure there is a few people left just like coree. Also this company may also have a great product but these are bad times. The market for pure photonic switches is not going to take off till 2005 according to research firms. So that leaves Alphion 3 years till they get some real deals. That is why they are folding not because they don't have a good product. 17million in first round will only take you so far as alphion discovered
manoflalambda 12/4/2012 | 7:36:35 PM
re: Boston Area Startups Slash Jobs Haley,

Are you willing to confirm the number of layoffs? Did you get all of the B round? Is a product announcement and or demo due at EOY 2001? Is Bharat enjoying all his trips around the country? :)

Inquiry minds pestering for info,
Manoflalambda
haley 12/4/2012 | 7:36:36 PM
re: Boston Area Startups Slash Jobs Alphion makes an all photonic switching system.
haley 12/4/2012 | 7:36:36 PM
re: Boston Area Startups Slash Jobs Alphion is alive and well. I work for them. Maybe you should spend less time driving around looking at empty parking lots and more time working.
switchrus 12/4/2012 | 7:36:37 PM
re: Boston Area Startups Slash Jobs Alphion....what did they make, or try to, the Web site was not very clear.
manoflalambda 12/4/2012 | 7:36:38 PM
re: Boston Area Startups Slash Jobs Well, everyone raise your hand if you got a call and/or e-mail from an Alphion employee describing the layoffs? (I didn't but people I work with did.)

I heard that they had 60 and laid off 40. Mostly SEs, SW and CAD/support guys. Their PCM is looking for work.

Salute,
Manoflalambda
Rumor 12/4/2012 | 7:36:39 PM
re: Boston Area Startups Slash Jobs C-

Author: mrtelecom Number: 96
Subject: Re: NJ STARTUP DEATH TOLL Date: 11/8/2001 11:06:35 AM


swing buy there parking lot. There is no one there. Alphion is a gonner. It is sad. but true
Rumor 12/4/2012 | 7:36:39 PM
re: Boston Area Startups Slash Jobs I really think you should swing by because you obviously are confusing it with another parking lot...
Cromwell 12/4/2012 | 7:36:39 PM
re: Boston Area Startups Slash Jobs Who's parking lot is empty?

C.
objectivity 12/4/2012 | 7:36:40 PM
re: Boston Area Startups Slash Jobs I forgot questions 4 and 5:

4. I (have / have not) interviewed with the company I am commenting on.

5. If yes to question 4, I (did / did not) receive a job offer.
router_manus 12/4/2012 | 7:36:40 PM
re: Boston Area Startups Slash Jobs For the people who dont know, most of the following aliases are employees (or wellwishers) of an Acton based startup who like to think they are making "Waves" :

yomama,broadbandboy,_____,RouteThis,right_leading

They lurk around all day on LR and spread FUD against the competition. They start jumping up and down when one of their competitor is in trouble. One of them came up with this deadpool list (which not surprisingly, does not include their company). I agree some of the companies in that list wont make it. But remember guys, you are in the same boat. Also those who live in glass houses should not throw rocks at others.



Eaton1234 12/4/2012 | 7:36:41 PM
re: Boston Area Startups Slash Jobs Many people are very disappointed on this website. This site harbors so many malicious rumors from unfounded sources, disgruntled employees, and fired workers. It is worse than Taliban who harbors Al Qaeda. To me, the rumor spreaders are more evil than those who spread Anthrax. They are losers and coward. They should be punished. I suggest that Lightreading publicizes their true identity and smoke them out of the dark side. Else,"Lightreading" should change the site name to "Heavy-Rumor-mill".
objectivity 12/4/2012 | 7:36:41 PM
re: Boston Area Startups Slash Jobs I am enjoying most of the posts. However, I have trouble separating the wheat from the chaff (or, to be more direct, the bias from the fact).

To help me, could recent posters add the following:

1. I (do / do not) work for the company I am commenting on.

2. I (do / do not) work for one of the "top ten." They follow:

- Crescent Networks
- AstralPoint
- Ellacoya
- Quarry
- Appian
- Coriolis
- Equipe
- Quantum Bridge
- Tenor Networks
- Gotham Networks

3. I (am / am not) angry right now.

By the way:

1. I do not work for the company I am commenting on. [I am not commenting specifically on a company]

2. I do not work for one of the "top ten."

3. I am not angry right now.

Thanks.


mrtelecom 12/4/2012 | 7:36:41 PM
re: Boston Area Startups Slash Jobs swing buy there parking lot. There is no one there. Alphion is a gonner. It is sad. but true
zipple 12/4/2012 | 7:36:42 PM
re: Boston Area Startups Slash Jobs Has anyone heard the size of the layoff from Photuris?
edaguy 12/4/2012 | 7:36:42 PM
re: Boston Area Startups Slash Jobs I was just at Internet Photonics, they have 100+ employees and are still looking for very good people.
Rumor 12/4/2012 | 7:36:43 PM
re: Boston Area Startups Slash Jobs I know someone from Alphion very well and they did not let go 80% of the company it was less than 50%
mrtelecom 12/4/2012 | 7:36:44 PM
re: Boston Area Startups Slash Jobs I ment Internet Photonics.


mrtelecom 12/4/2012 | 7:36:44 PM
re: Boston Area Startups Slash Jobs trust me 90 percent of Village Networks is gone. i work next door and the parking lot is empty. Basically the big wigs are eating what is left of the company and praying someone will buy them. Who is going to buy them when there is only a few people left. They are yesterdays news Like Coree.
Cromwell 12/4/2012 | 7:36:44 PM
re: Boston Area Startups Slash Jobs What evidence do you have to back up your statement? We discussed this on another LR thread a few weeks ago and everyone felt good about Internet Photonics. MKTG_Hack had good things to sayGǪhe interviewed there. Why do you feel differently?

C.
paulglen 12/4/2012 | 7:36:45 PM
re: Boston Area Startups Slash Jobs What do people think the chances of these companies making it thru 2002 into 2003?

1. Crescent Networks
2. AstralPoint
3. Ellacoya
4. Quarry
5. Appian
6. Coriolis
7. Equipe
8. Quantum Bridge
9. Tenor Networks
10. Gotham Networks


There's only one that I know about directly. To whoever thinks "no way" about #5, I say, "way." In fact, I'd put our chances of "making it thru 2002 into 2003" in the high 90s. No kool-aid required. We've still got cash. We're managing our cash burn. We continue to execute. Our trials are progressing well. We didn't overhire, and had no need to lurch into layoffs like so many other companies. We're the dark horse. Nobody's been paying any attention to us. The sleeper. But at the end of the day, we'll be left standing, and a lot of the companies that have gotten the attention won't. Mark my words.
_____ 12/4/2012 | 7:36:45 PM
re: Boston Area Startups Slash Jobs "We're the dark horse. Nobody's been paying any attention to us." Including your customers you dumb a$$. Except for the one which bought a few boxes- do you think that's enough to sustain the company for any given period of time? No! I'll bet the kids daycare center next door rakes in more cash than your company will ever see. But keep trying- you are keeping the real sales guys at Luxn on their toes and making them hungry to take away more of your "potential" customers.
sinorat 12/4/2012 | 7:36:45 PM
re: Boston Area Startups Slash Jobs My momma! CLAAAASSSSSSSSYYYYYYY!

You don't know MY mother. You don't know MY father. But one thing I know is I am glad my parents encouraged the growth of MY soul.

You really should find yours.

And, DON'T talk about MY mother.

BTW: MY cashflow is fine. And, mind you, I got mine the old-fashioned way. I earned it.

It's been a thrill. chao
route66 12/4/2012 | 7:36:46 PM
re: Boston Area Startups Slash Jobs Alphion let 80% of their staff go last Friday.
TZ_QB 12/4/2012 | 7:36:48 PM
re: Boston Area Startups Slash Jobs I propose scenario #4 (the one you like to ignore) to the inexperienced of this message board.

What if the investors thought, during the "white hot" optical era of past and sky high valuations, that to keep executive talent in their company through buying back stock at a severely discounted rate (at that time) would be cheap insurance and add value back to the company.

Now you want them to give it back? Oh yea, I'll bet the 5 mil they got and placed in personal investments is doing just great.

Did the VC/board do a good job? Hummm lets see. Ah yes, they missed the ball in mid 2001 when CAPEX practically went to zero (I guess they should have given [email protected]$3, [email protected]$9, [email protected]$4, [email protected]$7, [email protected]$6...etc a good heads up also?). And damn them, they did not help Rudy and George W predict the bombing of the WTC complex helping the U.S. into a recession. Yes I guess they just don't have "vision" or Bin Laden pals.

You blow hards are always looking for someone else to blame for your lack of cash flow. If you focused your energy on making free enterprise work rather than others who try harder, you would most likely have a full wallet rather than a shoulder with a friggin chip the size of your Mom's crack (sorry, see assumption below).

Here is my assumption: Your Mom's crack is huge because she sat on her fat ass (growing that large crack exponentially) watching opportunity pass her by. Pissed at all the money & nice houses her hard working neighbors had. Yes your doomed, it's genetic.

LightCatcher_NJ 12/4/2012 | 7:36:48 PM
re: Boston Area Startups Slash Jobs Coree closed it's doors
RJ-45 12/4/2012 | 7:36:48 PM
re: Boston Area Startups Slash Jobs Anyone knows how Internet Photonics is doing?
Photonboat 12/4/2012 | 7:36:48 PM
re: Boston Area Startups Slash Jobs >>Besides the startups already mentioned, there are several other ones in NJ, such as Multilink, Coree and ASIC Alliance. Anyone knows how they are doing?<<

Don't know about the other ones, but Multilink seems to be doing just fine. It's stock price rose 16% today...
LightCatcher_NJ 12/4/2012 | 7:36:49 PM
re: Boston Area Startups Slash Jobs "Alphion" has not closed it's door and just like the other start-up companies, they're trying hard to hold on until the VC's open their wallets... From what I understand it is true, Alphion did lay-off about 35% of their staff, but who hasn't... I think now is the time to hope that these companies and many others get their funding because if they don't more people are going to lose their jobs... across the board...
MaxQoS 12/4/2012 | 7:36:50 PM
re: Boston Area Startups Slash Jobs Route66 wrote:

Village has NOT officially closed its doors. There was a 35% lay off last week. The company is still functioning and waiting to close the 3rd round.
_______________________________________________

They've been playing that "Waiting to close the third round" song for a looooong time now. I hope they're doing well because I know a couple of people there but I don't have much faith in the 3rd round thing.
hitecheer 12/4/2012 | 7:36:50 PM
re: Boston Area Startups Slash Jobs Network Photonics closed their branch at Pataluma, CA. Except for very small portion of employees who moved to the headquarter, the rest were fired.

Besides the startups already mentioned, there are several other ones in NJ, such as Multilink, Coree and ASIC Alliance. Anyone knows how they are doing?
grape 12/4/2012 | 7:36:54 PM
re: Boston Area Startups Slash Jobs closed a bit ago.
mechenot 12/4/2012 | 7:36:55 PM
re: Boston Area Startups Slash Jobs Everything mentioned in this thread is true however, it was not the reason for lack of sales. The expected sales just didn't happen folks and that is the bottom line. Nobody is buying and that's the story across the industry. If anything, QB just has bad timing...
lu-alum 12/4/2012 | 7:36:55 PM
re: Boston Area Startups Slash Jobs This was not a buy back by any means, it's sale of an illiquid stock for personal gains (no capital came into the company as a result). This is pretty underhanded if you ask me. You have a group of investors who want QB stock, so instead of the company selling stock to them and adding the money to the companies pool of capital, these 3 guys sold them some of thier own personal stock at enormous PERSONAL profit. The get all the benefit of the upside if the company is successful, but their downside risk is minimized since they each end up with at least $5M. Your average employee is legally prohibited from selling their stock, but these guys abused their position for personal gain and do not share in the risk/reward proposition with their "valued" employees. While it's true this is all legal, it is extremely unethical and morally reprehensible. I would suggest that any QB employees that are left, stop by their offices and ask them about this.

I would suggest that the TZ and company should now demonstrate their good faith in the company by reinvesting that 5M BACK into QB? How bout it boys?



tarzan 12/4/2012 | 7:36:56 PM
re: Boston Area Startups Slash Jobs FYI - most founders' stock vests upon an IPO (technically speaking founders don't vest put VCs have buyback options for founders stock) even if you go with a top tier VC so I don't think this should be too much of a warning sign.
blanche 12/4/2012 | 7:36:58 PM
re: Boston Area Startups Slash Jobs Network Photonics is not a NJ startup (they are based in Boulder) and they are well funded ~$139M. Perhaps you are confusing them with another xxxxx Photonics...
fk 12/4/2012 | 7:37:00 PM
re: Boston Area Startups Slash Jobs Would you have done the same thing? Absolutely! And if anyone dares to say no, then you're kidding yourself, and everyone else listening!

Don't project your lack of ethics on the rest of us. It may assuage what little conscience you have to assume that everyone else would screw over their employees and harvest investor money for their own pockets, but frankly I think that there are lots of people who would be a lot more ethical than that. In my view, any investor that would agree to such an arrangement deserves to lose every penny of their investment. Furthermore, I would not work at a company where such an arrangement existed.

The good news, in that there is any to be had in this tawdry tale, is that the founders won't get any more money from QB. They mortally wounded their golden egg-laying goose. The bad news is that there are innocents who have to pay for the founders' sins.

Did the founding team run the company properly?

This really isn't so hard to answer. By putting themselves before the company, they failed to live up to their fiduciary responsibility. You don't find this sort of thing in successful startups.
wcook 12/4/2012 | 7:37:02 PM
re: Boston Area Startups Slash Jobs Okay doke Yoke :-)

But... from what I understand of slang it's a completely inventive language. So, for example, "Yo!" approximates "Hey You!". It's just a made-up equivalent. Here's what my dictionary says:

slang n. 1. A kind of language occurring chiefly in casual and playful speech, made up typically of short-lived coinages and figures of speech that are deliberately used in place of standard terms for added raciness, humor, irreverence, or other effect. 2. Also, language peculiar to a group.

In other words, there is no "true" slang. It's just made-up expressions. You know, someone "goofing" on the language. It's not necessarily related to poor grammar either. Picture yourself back in high school English trying to tell your teacher that a sentence you used -- "Their going to the game," she said -- was just an example of your protagonist's use of slang. I don't think she'd buy it!

But if your protagonist was a young kid who decided to be silly and said, "Oh contrar!" That would be another thing. It would be hard to imagine a typical young kid using a heavily French accented phrase such as "Au contraire". Could happen. But perhaps then it would make the character seem a bit more learned than you intended.

Food for thought...


P.S. Suggestion: enter "Oh contrar" into a search engine to find references to it on the Web.
sinorat 12/4/2012 | 7:37:04 PM
re: Boston Area Startups Slash Jobs The Lobby!!!! The bag-o-cash is in THE LOBBY!

Those who were let go, who may have been supported by curious_george's 15 mil scenario 2, or by the money spent on the new diggs in Andover, would have been happy to be STILL BE working at High Street. "It's good to be king", I suppose. I guess we can let them eat cake too.
A-R-R-O-G-A-N-T

Speed is life..............
route66 12/4/2012 | 7:37:05 PM
re: Boston Area Startups Slash Jobs "VILLAGE HAS OFFICIALLY CLOSED ITS DOORS. TEHY LAID OFF EVERYONE EXCEPT FOR A SELECT FEW. GOT INFO FROM INSIDE.
aLSO NEWS OF ANOTHER NJ START-UP FOLDING
NEWS TO FOLLOW."

Village has NOT officially closed its doors. There was a 35% lay off last week. The company is still functioning and waiting to close the 3rd round.
tjs 12/4/2012 | 7:37:05 PM
re: Boston Area Startups Slash Jobs linsy,

No question, if I were zona & company I would have done it too. It's an easy call, a quick 5 million, no risk, still keep 85 percent of my stock for the upside.

The real losers here are the employees and the limited partners in the VC firms.

You really missed the point, badly. By not keeping the founders hungry they allowed them to take higher risks and make less prudent decisions than would be the case otherwise. The day the board allowed this to happen they set the outcome.

If you think one of the top tier VC firms would have allowed this think again. This kind of thing is explicitly excluded in every restricted stock agreement I've ever seen.

read the S1 it outlines 3 mistakes:

1. early sales by founders.

2. full vesting of founders on offering.

3. limited restricted stock in employee hands.


Tom
curious_george 12/4/2012 | 7:37:06 PM
re: Boston Area Startups Slash Jobs My logic may be flawed and not obvious so bear
with me.

From the perspective of an investor / VC
community:

Scenario 1
----------

Hi Tony, I have 5 million dollars which I would
like to INVEST in your company because I believe
the company has the potential to succeed and
increase it's value. Would you take my money and
put it in the COMPANY bank account to use to help
increase the value of the company by highering
more employees or developing new hardware. In
exchange all I ask is for a portion of ownership
in the company. I understand this will reduce
your personal percentage ownership in the company
without affecting other employee's percentages.

Scenario 2
----------

Hi Tony, I have 5 million dollars I want to
deposit in your own personal bank account so you
can build/buy that dream house you've always
wanted, go on that expensive vacation, buy a
couple of cars, retire early (hopefully not before
this company goes IPO) whatever you want. In
exchange I want to get in on some of the action.
Can you just give me partial ownership in you
company? By the way let's keep this hush-hush,
don't let any of your other existing employees in
on this deal (except maybe for the 2 other
founders). No need to be fair and make this offer
for everyone across the board. After all you're
the president you can do whatever you want.


Scenario 2 leave a bad taste in my mouth. Just my
opinion. Would I have done the same if I was in
their shoes, who knows. But if I did, I KNOW I
would feel a high degree of guilt because this
"deal" didn't involve all employees. Looking back
on it, this 15 million dollars which was put into
personal bank accounts instead of the company
account could have sustained 45 employees for
another year (assuming an average cost of 200K
per/year/employee).

From the VC's perspective, were they investing in
the company or investing in the "happiness" of the
founders with the idea, if the founders are happy
and comfortable, the company has a better chance
of succeeding? What kind of logic is that!

I'm not naive, I know these kind of backroom deals
occur in real life all the time. The ethics just
bother me, especially when it translates to 45
more unemployeed people.

For what it worth, just an opinion ...
jimbo59 12/4/2012 | 7:37:07 PM
re: Boston Area Startups Slash Jobs "VILLAGE HAS OFFICIALLY CLOSED ITS DOORS. TEHY LAID OFF EVERYONE EXCEPT FOR A SELECT FEW. GOT INFO FROM INSIDE.
aLSO NEWS OF ANOTHER NJ START-UP FOLDING
NEWS TO FOLLOW."

Sorry, a little louder please?!
linsy 12/4/2012 | 7:37:08 PM
re: Boston Area Startups Slash Jobs People! People!!! Is anyone willing to admit that they wouldn't have done the same friggin' thing as the founders of QB?!?! The only reason people are talking about it is because they didn't have the same opportunity! Did they do anything illegal? No! Would you have done the same thing? Absolutely! And if anyone dares to say no, then you're kidding yourself, and everyone else listening!

Someone close to me was part of the QB lay-off last week. It's no fun, and we both hoped it would have worked out very differently. But no one promised riches! No one put a gun to their head and forced them to go to work there!

Did the founding team run the company properly? That's a question that is open to far too much interpretation for anyone to have THE answer! Hindsight is always perfectly 20/20.

Personally, I give them credit for trying! They did something most of us only wish and dream for! And if I had an opportunity to turn some paper into real money, I'd do the same thing they did!

manoflalambda 12/4/2012 | 7:37:08 PM
re: Boston Area Startups Slash Jobs 4)ALPHEON.

aka Alphion? Heard 2/3 to 80% out the door. SW and SEs mostly, some CAD. The names on the website and some HW remain, as someone said, to burn the remaining VC cash.

Salute,
Manoflalambda
mrtelecom 12/4/2012 | 7:37:11 PM
re: Boston Area Startups Slash Jobs THESE ARE NOW CONFIRMED CLOSURES

1)TACHION
2)COREE NETWORKS
3)VILLAGE NETWORKS
4)ALPHEON.

PENDING DEATHS(1-3 MONTHS DEPENDING ON NEXT ROUND FUNDING)
1)JEDAI
2) NETWORK PHOTONICS
mrtelecom 12/4/2012 | 7:37:11 PM
re: Boston Area Startups Slash Jobs VILLAGE HAS OFFICIALLY CLOSED ITS DOORS. TEHY LAID OFF EVERYONE EXCEPT FOR A SELECT FEW. GOT INFO FROM INSIDE.
aLSO NEWS OF ANOTHER NJ START-UP FOLDING
NEWS TO FOLLOW.
LocalYokel 12/4/2012 | 7:37:15 PM
re: Boston Area Startups Slash Jobs "'Oh contrar' is just English slang. It's a combination of 'au contraire' and 'on the contrary' "

Actually, I did post it mostly in jest, as light counter-balance to the startup mud-slinging that's been going on. I guess I forgot the Smiley ;^)

But since you bring it up, I'll continue (still in a light-hearted frame of mind)...

"Oh contrar" is not true english slang, It's more correctly referred to as a phonetic approximation. People hear it, know what it roughly means, but then use local phonetic constructs (in this case english phonetic constructs) in writing it down. The fact that you might have seen it on message boards (I never have) means that some may be adopting others' use of it.

It was a good opening to your post, so the intentions were good, but you took some wind out of it with the spelling. "Au contraire" would have been nicing icing for the cake.

Sort of ranks up there with using:
"their" vs. "they're"
"your" vs. "you're"
"one fowl swoop" instead of "one fell swoop"
thinking "irregardless" is a word
"mute point" instead of "moot point"

So if you use these correctly when posting contrary views to others, their going to see that your more intellectually gifted, and in one fowl swoop you'll make they're argument a mute point, irregardless of they're merits.

Yoke
jkz 12/4/2012 | 7:37:16 PM
re: Boston Area Startups Slash Jobs The only ones worth watching right now are Internet Photonics and Jedai.

_____________________

What do they do, and why do you think they're worth watching?
TZ_QB 12/4/2012 | 7:37:16 PM
re: Boston Area Startups Slash Jobs Booo hoooo hoooo. Stop crying and pull that binkey out of your mouth. Yes, it's good to be King.
ivehadit 12/4/2012 | 7:37:17 PM
re: Boston Area Startups Slash Jobs sino rat,
this is getting pretty vicious.

what's a work here? are we jealous of tony zona's good fortune. he got up and did something. thats a whole lot better than most griping on this board about quantum bridge.

sounds like a lot of sour grapes to me.
sinorat 12/4/2012 | 7:37:18 PM
re: Boston Area Startups Slash Jobs I always thought TZ looked a bit like a "hands-off Don" just before one of his capos was about to kill you.
Or is he more like John Lovits in his SNL devil suit.........
What evil lurks behind that arrogant smirk?
MKTG_Hack 12/4/2012 | 7:37:20 PM
re: Boston Area Startups Slash Jobs The death rate in NJ is about what you'd expect - somewhere in the 90% range. The only ones worth watching right now are Internet Photonics and Jedai. Most suffer from the NYC/Philadelphia business mindset that dictates that you hire inexperience because it is cheap, mistreat employees because you can always get more, kill any idea that didn't come from senior management because they'll feel threatened, and drive teamwork through FUD rather than any kind of a shared idea.
MKTG_Hack 12/4/2012 | 7:37:20 PM
re: Boston Area Startups Slash Jobs "Change the world" is simply marketing shorthand for "yea they thought they might be able to make money at this but wealth wasn't the primary goal. They wanted to do something different, try something new, and maybe hit on a big idea. If they got rich, that was a bonus, but the primary goal was to see if they could fundamentally change the way things worked." Contrast that to today when most companies are formed simply to be sold once the first new product comes out. Very few of the "leaders" today have any interest in building a sustainable company. They drive everyone into the ground and then sell the ground out from under them to the highest bidder.

back2basics 12/4/2012 | 7:37:21 PM
re: Boston Area Startups Slash Jobs The web site looks DOA. It looks like a case of WU-FU KILLED YOU!

Seqouia web site , a VC investor, no longer lists them.

anyone know what's up?
LightCatcher_NJ 12/4/2012 | 7:37:22 PM
re: Boston Area Startups Slash Jobs From what I understand Village is waiting 2nd round, still... I heard of lay-offs, people leaving, and the latest from you posting selling office space.... None of which surprise me... Seems like a trend in the NJ Area...
tjs 12/4/2012 | 7:37:26 PM
re: Boston Area Startups Slash Jobs nlogan,
Thanks for the pointer.

What morons the VC's were. No wonder Zona is always smiling, he's laughing to himself about the stupidity of his board and VC's.

I would like to pose this question to the QB board: WHAT IS YOUR EXCUSE ?

Tom

speedy1 12/4/2012 | 7:37:27 PM
re: Boston Area Startups Slash Jobs Anyone knows about the following companies:
...
2) Timetra (another metro ethernet player)

Their websites are down.

================================================
I just checked www.timetra.com and it's up.
It says they're a charter member of the MEF.

I also just found jobs postings here on Light
Reading.

Sounds like they're OK.
-s
jsailor 12/4/2012 | 7:37:27 PM
re: Boston Area Startups Slash Jobs
Anybody heard anything about Village Networks?
rumors are flying about everything from sales staff leaving to their office space being on the market
myresearch 12/4/2012 | 7:37:29 PM
re: Boston Area Startups Slash Jobs Look at page 44 of their S-1 filing:

"In May 2000, Messrs. Zona, Gwynne and Masucci each sold 554,324 shares of common stock to investors, including those set forth below at a purchase price of $9.02 per share"

It looks like the founders had a private IPO for themselves ...

MY
wcook 12/4/2012 | 7:37:29 PM
re: Boston Area Startups Slash Jobs You're too serious. "Oh contrar" is just English slang. It's a combination of "au contraire" and "on the contrary". Message boards use it a lot. Language is made up of rules that are made to be broken. That's what makes it interesting, dig?

wcook
Roy 12/4/2012 | 7:37:30 PM
re: Boston Area Startups Slash Jobs th,

Overall I agree with your sympathies B-) Most startups fail. That's true. And many people who invest a great deal of their lives in those startups are greatly disappointed when they do. True again. But the bitter are usually not bitter for no reason at all. In the past few years many new companies have used outrageous business practices in their pursuit of quick wealth. Hopefully some day a book will be written about some of these people. It would make for an interesting read, that's for sure.

It appears that the people running your company have integrity. They have not outright lied to their employees. But that's not the case in other companies. It looks like this post may have come from an employee from a well-known former high-flying IPO. According to a number of posts that have appeared here over the past year, executives at that company have made a habit of misleading or maybe even outright lying to their employees and shareholders.

This is not just a case of sour apples. Thank yourself lucky that you haven't experienced sleazy business practices where you work.

rs
reality_slap 12/4/2012 | 7:37:31 PM
re: Boston Area Startups Slash Jobs Execution was stellar?! Execution of what, beyond employees?!

Ellacoya has not delivered ANYTHING! As far as "accolades from investors" - you must play for that team, because the rest of us know that, in many cases, they are the root cause of start-up issues and basically KNOW NOTHING.

Ellacoya's investors nearly killed them. Last weeks layoffs, as well as very strict terms on new funding will prove to be the death of them - within 2 quarters.

As far as Ron pushing the sales team - wonder who he's pushing, as there is NO MORE SALES TEAM. Fact is, when you bring in a high-priced CEO, you expect him to bring at least one big deal with him that is about 80% done. Ron, not being from the provider space, had nothing to bring along.

"And that's all I have to say about that..."
curious_george 12/4/2012 | 7:37:31 PM
re: Boston Area Startups Slash Jobs http://www.edgar-online.com/bi...

Question:
I'm trying to figure out where in this long
legal document it shows the founders already
getting compensated with "millions" of
dollars (not shares). The only place I can
see this is below which is about 1/3 of the
way through the document. The way I read this,
the 3 founder were allowed to IMMEDIATELY
sell back 1/4 of their shares at I guess a
strike price of 1.00 per share as soon
as the series A funding round closed. Is this
a correct interpretation of this legal document.
If so, this is INCREDIBLE and frankly
unbelivable, they're allowed to do this?
The VC's / board didn't object/care?



On October 23, 1998, the Company sold a total of 12,600,000 shares of restricted common stock to its three founders and four additional founding employees at $0.00033 per share, which represented the fair value of the common stock as determined by the Board of Directors on the date of sale. The Company entered into restricted stock repurchase agreements with its three founders that provide for the vesting to each founder of 25% of the unvested shares upon the closing of the Series A Preferred Stock financing (November 18, 1998). The remaining shares vest monthly over 36 months beginning on December 1, 1999. The Company also entered into restricted stock repurchase agreements with its four founding employees that provide for the vesting to each founding employee of 25% of the unvested shares upon the first anniversary of the closing of the Series A Preferred Stock financing (November 18, 1999). The remaining shares vest monthly over 36 months beginning on December 1, 1999. In accordance with the October 1998 restricted stock agreements, if the employment of any of the founders or founding employees is terminated, the Company has the right to repurchase, at the original purchase price through January 1, 2003, the total number of shares that have not vested. In June 2000, the Board of Directors approved an amendment to the three founders' restricted stock agreements to provide that in the event that a founder is terminated without cause, as defined, the founders' unvested shares shall vest in full. As of September 30, 2000, none of these individuals have terminated their employment with the Company. Shares subject to repurchase at December 31, 1998 and 1999, and September 30, 2000, were 9,870,750, 9,187,502 and 6,824,996 shares, respectively.

wanman 12/4/2012 | 7:37:31 PM
re: Boston Area Startups Slash Jobs Bravara (was Bravida) is out of business. I can't speak for Timetra. BTW, Bravara was NOT a metro Ethernet player per say, they had bigger plans. Oh well, those plans have now just faded away...
myresearch 12/4/2012 | 7:37:32 PM
re: Boston Area Startups Slash Jobs nlogin,

Do you have a pointer to the S1?
We should get it displayed everywhere
and make sure everyone knows about it.

MY
myresearch 12/4/2012 | 7:37:33 PM
re: Boston Area Startups Slash Jobs Some of the companies are gone while still in stealth mode and just went under in a stealth way:-)

Anyone knows about the following companies:

1) Bravida Corp (a metro ethernet player)
2) Timetra (another metro ethernet player)

Their websites are down.

MR
nlogan 12/4/2012 | 7:37:34 PM
re: Boston Area Startups Slash Jobs If you had a chance to read the S1, you'd see that the fearless leaders at QB (leading their employees straight into the unemployment line, but I digress) already pocketed a cool 5Mil apiece.

If I had to guess, I would say that the hardened IOT would be gone first. They also developed a whole product line for a single vendor who backed out on the deal at the last minute ("sorry, no thanks") which leaves them deep into the R&D red with absolutely nothing to show for it.

So much for all of those millionaires in waiting up there.
LocalYokel 12/4/2012 | 7:37:36 PM
re: Boston Area Startups Slash Jobs "But oh contrar, router_manus..."

That's "au contraire"

Yoke
diag_eng 12/4/2012 | 7:37:36 PM
re: Boston Area Startups Slash Jobs >>Give me a friggin break...companies...were not >>out to cure world hunger

I think MKTG meant the "networking" world. Relax, take a deep breath and chill.
toohideous 12/4/2012 | 7:37:36 PM
re: Boston Area Startups Slash Jobs A couple of things I notice from this thread: 1. Some people got badly burned, and feel angry and hurt by it. 2. Some people seem to have forgotten that at best one in ten startups make it.

In the present economy 1 in 10 is perhaps asking a lot.

I agree that when the arrogant get what they've got coming things seem right in the world. But no one should forget that karma happens to everyone.

Now as for the deadpool list, I work for one of them listed as no way. Been at it for a while now. Yep, things look bleak. Optimism is in short supply.

Yet I don't feel like we've been lied to by management. We were never guaranteed success. We were told that if all things come together at the right time we should be able to stay in business. And that is what it is all about. Make a product (or two or three) and sell it to customer(s). One thing leads to another - you stay in business. This process is never easy and seldom pretty. Lately there has been an almost unreal element in the economy which startups have no control over. I'm thinking of the job loss in all sectors, Quest sort of kills it's network build out, LU and NT and JDSU and others faltering just to name a few. Strange times that aren't helping anyone....

I also don't think we have architects or product managers who don't listen to customers. We're constantly tweaking a little here and there. Doing whatever we can to satisfy our main leads.

Maybe I'm naive but succeed or fail I think the important thing is that we gave it everything we had. You aim for a place in the market with a product and sometimes you hit right on or near the bull's-eye other times you don't. Even well established companies miss. Anyone remember apple's PDA the Newton? Not really, right?

Point is, and this is where I agree with router_manus, all these negative messages don't speak for everyone. If you were mislead, if you're hurt by it, I understand your justifiable anger. What I'd like everyone reading this thread to know (and you likely already realize) is that things aren't always as they appear from reading these negative posts.

-th


PS. Please don't focus on or flame the newton ref. I personally believe that it was a bit ahead of it's time but also a bit slow and a bit expensive. The point is, it is no longer on the market. At least not at apple.com. You can still find stuff at cnet.com....
lu-alum 12/4/2012 | 7:37:37 PM
re: Boston Area Startups Slash Jobs ...and the "early days" of the networking industry is that 15 years ago people were focused on changing the world"

Give me a friggin break, let's not over romanticize our jobs here people. I'm pretty sure that the folks who founded companies life Cisco and Wellfleet, and more recently Cascade were not out to cure world hunger. If you think think so, I've got a bridge you should take a look at. If you don't like this business, then hand out soup at the pinestreet inn. I'm sure you'll find it more fulfilling. You're breakin my heart here.
MKTG_Hack 12/4/2012 | 7:37:40 PM
re: Boston Area Startups Slash Jobs 1. Selfish, greedy corporate execs who cash in their stock en masse, claiming their financial planners made them do it.

-------------------------
WCook, I think you hit it on the head! The major diffrerence between today and the "early days" of the networking industry is that 15 years ago people were focused on changing the world. Unfortunately, when the charletans realized how much money could be made in the VC/IPO market without producing anything, the whole thing came crashing down. Competing standards, me-too products, market confusion, corporate death.
wcook 12/4/2012 | 7:37:41 PM
re: Boston Area Startups Slash Jobs But oh contrar, router_manus. The fun is in watching the mighty fall with not a crash, but a thud. Get me my popcorn while I munch happily at the slaughter that has befallen some of the more arrogant among them...

Top Ten Reasons for Disaster in This and Future Economies

10. Somewhat slow-on-the-uptake upper management team only comfortable with other none-too-bright team players.

9. Foreign managers protecting foreign workers who can't speak or write English well.

8. Tricking employees into signing noncompetes by promising more stock options, then laying them off en masse. Have fun attracting talent in the future.

7. Misleading employees with future promises: We don't need to lay off anyone for years. We have plenty of money in the bank. Yeah, have fun attracting talent again.

6. Boyz-to-Men management team. What do I need experience for? Crisis management works fine for me.

5. Artful dissection of dissenting voices. Let the lemmings rule.

4. Employees running scared, selling themselves to a management team that, face it, is primarily interested in just saving their own skin. Save your dignity.

3. Management too weak (scared?) to focus top talent that is really only talented at doing what they feel like doing.

2. Product engineered by arrogant architects with a penchant for pissing off customers -- i.e., when giving the customer what you want is more interesting than giving them what they actually want.


Drum roll please B-) And the number one reason to cheer for the failure of many of these "players"

1. Selfish, greedy corporate execs who cash in their stock en masse, claiming their financial planners made them do it.
DeWolfe 12/4/2012 | 7:37:41 PM
re: Boston Area Startups Slash Jobs Perhaps Vivace deserves number 1 position


1. Crescent - No way
2. Astral Point - Very slim
3. Ellacoya - No way
4. Quarry - No way
5. Appian - No way
6. Coriolis - Possible
7. Equipe - Slim
8. Quantum Bridge - slim
9. Tenor - No way


10. Gotham - gone

You are wrong with #1 on your list.
router_manus 12/4/2012 | 7:37:44 PM
re: Boston Area Startups Slash Jobs Dont waste too much thought on the list. The writer belongs to a startup which (not surprisingly) is not on the list. Its employees are regulars at LR newsgroups and experts at promoting their company and spreading FUD against the competition.
rjmcmahon 12/4/2012 | 7:37:47 PM
re: Boston Area Startups Slash Jobs Be careful not confuse a management's inability to raise money (from capital) with it selling out its own employees (labor). The third leg (the public) doesn't seem to be buying, which is required to generate the profits capital requires.

-Bob
tjs 12/4/2012 | 7:37:47 PM
re: Boston Area Startups Slash Jobs nlogan

what do you mean ??? did zona and masucci sell some of their founders stock to the VC's in the B round ???. If the VC's let them then they are beyond stupid.

It looks like you are right, they still have that VP of strategic planning listed on the web site.

Any word on what product line was dropped ?.

Tom


>Nice job again, Tony, you incompetent moron. >Wait - you don't care - you already have 5 >million!

>I bet Tony/Masucci & co wish they never filed >that S1. Letting the entire company know that >you've sold them out can't be a good business >venture
jimbo59 12/4/2012 | 7:37:49 PM
re: Boston Area Startups Slash Jobs "QB Cut their core people keeping all the managers. Imagine that. "

heh, kinda sounds like the way LU is executing their turnaround. I guess the apple doesn't fall far from the ex-lu tree...
Arpita 12/4/2012 | 7:37:49 PM
re: Boston Area Startups Slash Jobs Why are AstralPoint's chances slim? I thought they already have one product in market.
ExQB 12/4/2012 | 7:37:50 PM
re: Boston Area Startups Slash Jobs NLOGAN YOU RULE!!!!!!!!

QB Cut their core people keeping all the managers. Imagine that. Keep your talent guys! Real smart way to insure you have a good product.

Should have sold your company a while ago... Imagine that, employees would have been happy right now.



LocalYokel 12/4/2012 | 7:37:51 PM
re: Boston Area Startups Slash Jobs Think you're on to something Confucius, check out yomama's post from Sept. 21, almost identical

http://www.lightreading.com/bo...

yomama, this is getting tedious

Yoke
nlogan 12/4/2012 | 7:37:51 PM
re: Boston Area Startups Slash Jobs Inside tip: Another completely political layoff brought to you buy your friends, the QB management team. Good talent slashed, friends of management kept, product lines dropped...

Nice job again, Tony, you incompetent moron. Wait - you don't care - you already have 5 million!

I bet Tony/Masucci & co wish they never filed that S1. Letting the entire company know that you've sold them out can't be a good business venture.
Confucius 12/4/2012 | 7:37:52 PM
re: Boston Area Startups Slash Jobs You are wrong with #1 on your list.

That's not the only error. I bet in one year's time, it will be evident that the author of that list is no better at handicapping startups than LR.
_____ 12/4/2012 | 7:37:53 PM
re: Boston Area Startups Slash Jobs Route this: Thanks for the info. Seems like your info is right on the mark. My comments regarding the 7670 relate to sales outside N. America. Mostly existing Newbridge install base.

Is the passport 15k an edge device or are they also planning a multi shelf core device?
So for now the 15k is eating into LU's edge market share? So would the 15k be the true competition for WSN and Gotham if both were shipping product? Do you know what kind of problems the 15k is having?
cyber_techy 12/4/2012 | 7:37:54 PM
re: Boston Area Startups Slash Jobs 1. Crescent - No way
2. Astral Point - Very slim
3. Ellacoya - No way
4. Quarry - No way
5. Appian - No way
6. Coriolis - Possible
7. Equipe - Slim
8. Quantum Bridge - slim
9. Tenor - No way
10. Gotham - gone

You are wrong with #1 on your list.
RouteThis 12/4/2012 | 7:37:54 PM
re: Boston Area Startups Slash Jobs In response to "________" (you must be friends with "Prince"...do they call you the "Artist-formerly-known-as-capable-of-writng-his-name-but-now-he-only-uses-a-big-underline...) Sorry, man....couldn't resist that one.

I have to strongly dissagree with your post of the following...

"These are hard core facts, just do a search on the 7670 and you'll find them closing deals left and right for edge deployments and facing no real competition (today) on the edge."

Those are -not- the "hard core facts". The Lucent CBX-500 was the most successful multi-service edge switch until the Passport 15000 came along and stomped on it. (unless you might be speaking of the market outside of North America - then Alcatel/Newbridge % marketshare increases)

All you need to do is read the data sheets and the Yankee Group type reports on market share. While the Alcatel 7470/7670 combo (former Newbridge gear) is doing well - the Passport 15000 is kicking butt....although I've heard that some carriers have had major issues with this Nortel platform.

The multi-shelf version of the Alcatel 7670 is supposed to be released around March 2001, but as you mentioned they have slipped quite a bit on this so my guess is that if it does come out at that time they will need to drastically cut back the feature set to meet only those conditions pertaining to contract committs.

I also agree that Wavesmith and Gotham (Equipe as well) have their work cut out for them. They are small fish in currently turbulent waters and will have a hard time convincing the typically conservative carrier market to buy - or that they'll even make it through this period.

I'm surprised that Cisco dropped the ball in this market space - even though they're IP guys - they have the best management team/vision in terms of capturing technology and anything they can to gain marketshare....oh well, more pie for Lucent, Marconi, Alcatel and Nortel.
_____ 12/4/2012 | 7:37:54 PM
re: Boston Area Startups Slash Jobs BBboy: "I hear that ALA's 7670 is big core switch, not edge. RouteThis knows more than I do, maybe he/she can fill us in?"

But I think the current 7670 is an edge device which would compete with WSN and Gotham and the LU install base. And the 7670 is shipping in large quantities all over the world.

I hear the 7670 is a good 14-18 months away from being a core device so for now all sales have been on the edge. I hear the next gen model will be core and have MPLS and IP - so for now, it's really only ATM. And they are gaining quite a bit of market share on the edge with LU dropping the ball and none of the start ups having an edge device shipping today.

These are hard core facts, just do a search on the 7670 and you'll find them closing deals left and right for edge deployments and facing no real competition (today) on the edge.

And they'll be doing the same in the core unless someone gets to market before them... which should not be too tough seeing the 7670 as a core solution keeps slipping.

rfennis 12/4/2012 | 7:37:57 PM
re: Boston Area Startups Slash Jobs How is Ellacoya doing money wise ?
Any new funding, customers, lay-offs ?

I noticed you stated "No Product", this is not true. Engineering execution was stellar, with accolades from investors for record time to market. Complete product suite.

Ron says he is pushing the Sales Teams.
I don't think anyone's buying.
Ron should be "making the deals" within reason,
to obtain new customers and deliver what they want, no matter what.

He say's uhh! and Ahh!/Hmm! way to much.
Makes you think he's lost.
Perception is reality.

Has there been a second round of lay-offs ?
lu-alum 12/4/2012 | 7:37:58 PM
re: Boston Area Startups Slash Jobs "Wavesmith looks like a small edge ATM switch. I dont understand why any carrier would go to a startup to buy a small ATM switch, which probably doesnt have even advanced ATM features like PNNI, ATM/FR interworking and softPVCs etc"

I think you have them confused with ASC or someone like that WSN makes some pretty big claims about their those features you mentioned.
_____ 12/4/2012 | 7:37:59 PM
re: Boston Area Startups Slash Jobs Triacs:

I would not count Unisphere in- I don't think the Castle (voice) group is giving anyone a run for the money; not today and not tomorrow. Not sure about the others.
_____ 12/4/2012 | 7:37:59 PM
re: Boston Area Startups Slash Jobs Topicoptic, AKA "Fancy Pants" why don't you just go right ahead and tell us since you are in "The Know"

What the heck is the big secret behind keeping the number from the GP? You egg on the readers and soon you'll get egg on your face.
seen_the_light 12/4/2012 | 7:38:00 PM
re: Boston Area Startups Slash Jobs >Author: opticaluser Number: 2
>Subject: Re: What about the rest?
>Date: 11/2/2001 10:58:10 AM

>1. Crescent - No way
>2. Astral Point - Very slim
>3. Ellacoya - No way
>4. Quarry - No way
>5. Appian - No way
>6. Coriolis - Possible
>7. Equipe - Slim
>8. Quantum Bridge - slim
>9. Tenor - No way
>10. Gotham - gone

I love these posts that just put up targets and throw obviously biased and unjustified darts are startups.

Tenor - No way? Given the surprising existance of an MPLS based core, if they stay alive through the "down turn" (which is panning out to be more of a "spiraling 180") they'd do quite well.

Also, a legend would be nice. Is Possible better than Slim? I'm guessing it is since Coriolis seems to have customers, didn't overhire and act from what I hear, congealed a nice team atmosphere.
triacs 12/4/2012 | 7:38:01 PM
re: Boston Area Startups Slash Jobs What about the chances for some of the companies in Sonuses space like:
Convergent
Taqua
Telica
Unisphere
broadbandboy 12/4/2012 | 7:38:06 PM
re: Boston Area Startups Slash Jobs router_manus: "Wavesmith looks like a small edge ATM switch. I dont understand why any carrier would go to a startup to buy a small ATM switch, which probably doesnt have even advanced ATM features like PNNI, ATM/FR interworking and softPVCs etc."

Question: How do you know they don't have those things now? Maybe they will at later time?

I can understand carriers not wanting to buy from startups, but I can understand wanting to buy new switch with much higher density and less power, and maybe better software than the old stuff they have now.

I don't of know any big vendors bringing out new rack'em and stack'em edge ATM switches like WSN. Must be nice not to have lot of competition.

BBboy
router_manus 12/4/2012 | 7:38:06 PM
re: Boston Area Startups Slash Jobs Wavesmith looks like a small edge ATM switch. I dont understand why any carrier would go to a startup to buy a small ATM switch, which probably doesnt have even advanced ATM features like PNNI, ATM/FR interworking and softPVCs etc. There are already lot of established companies like Marconi and Alcatel which have a pretty stable ATM products.
Dont know how real Gotham is. On paper they do look pretty impressive.
topicoptic 12/4/2012 | 7:38:09 PM
re: Boston Area Startups Slash Jobs you heard, you heard, you heard, you heard wrong as an ex-QBer all three numbers are wrong
lucender 12/4/2012 | 7:38:09 PM
re: Boston Area Startups Slash Jobs > you heard, you heard, you heard, you heard wrong as an ex-QBer all three numbers are wrong

The 90 laid off number is what I heard from a "friend of a friend" who is there, the rest of the numbers were based on the LR article's speculation of 40%.
broadbandboy 12/4/2012 | 7:38:11 PM
re: Boston Area Startups Slash Jobs _"It seems like the Gotham and Wavesmith products are essentially the same. And looks like they are going after the same customers."

They may be after same customers, but I don't think they are the same. Based on what I have read, WSN looks like ATM edge switch, smaller than most. Gotham has different design- network processors do the heavy lifting.

"And how do their products compare to ALA's 7670 which today is basically a similar sized ATM edge switch(future mpls/ip capabilities) scalable to ~250 gig for the core;"

I hear that ALA's 7670 is big core switch, not edge. RouteThis knows more than I do, maybe he/she can fill us in?

BBboy
lucender 12/4/2012 | 7:38:16 PM
re: Boston Area Startups Slash Jobs Heard via FoaF, delta is minus 90 persons, don't know start/end values. That would be 40% of 225...
lu-alum 12/4/2012 | 7:38:17 PM
re: Boston Area Startups Slash Jobs I think the difference is Gotham announced product more than a year ago according to their website and have announced no customer wins OR even betas. WSN announced this year and has announced betas, although no FCS. Only marginally more real I suppose. Time will tell.

_____ 12/4/2012 | 7:38:19 PM
re: Boston Area Startups Slash Jobs It seems like the Gotham and Wavesmith products are essentially the same. And looks like they are going after the same customers.

Does anyone know the difference in the products? I would guess that Gotham is further along seeing that they have been around longer. So why aren't they selling product yet? And if they aren't selling product, why does Wavesmith think they will be able to?

And how do their products compare to ALA's 7670 which today is basically a similar sized ATM edge switch (future mpls/ip capabilities) scalable to ~250 gig for the core; when the product is ready?
[email protected] 12/4/2012 | 7:38:20 PM
re: Boston Area Startups Slash Jobs What's that sound?

It's the sound Ron Sege makes as he pilots the Ellacoya rocket ship plows straight into the ground at Mach-3. Shame on LR for not doing more due dilegence on ENI in the past few months - no product, missed goals, departures, mis-hires, etc. It's not over, except for the last one unplugging the coffee maker on their way out the door. Make it through 2002? Ha! If they make it past the first quarter it will be a miracle.
Betelgeuse 12/4/2012 | 7:38:20 PM
re: Boston Area Startups Slash Jobs MKTG_Hack,

Yes I took it from the star. It is one of the largest red giants found (If you ever saw me you'd understand why I chose it). It's in the Orion Constellation, Orion's shoulder.

Props to your dad for serving in WWII!!!

Betelgeuse
MKTG_Hack 12/4/2012 | 7:38:23 PM
re: Boston Area Startups Slash Jobs Betelgeuse:
Where did you come up with the name? Asking because my father served on a ship by that name during WW2! (BTW - I know it is the name of a star)
lu-alum 12/4/2012 | 7:38:23 PM
re: Boston Area Startups Slash Jobs It was also noted in "The Hitchhikers Guide to the Galaxy" as being near the home of one of the characters.
Betelgeuse 12/4/2012 | 7:38:24 PM
re: Boston Area Startups Slash Jobs Sadly, I think they will all be extinct by 2003. Unless a company has an established customer base and good revenue, or had a successful IPO back in the 20th Century, forget it.
StartUpGuy1 12/4/2012 | 7:38:25 PM
re: Boston Area Startups Slash Jobs 1. Crescent - No way
2. Astral Point - Very slim
3. Ellacoya - No way
4. Quarry - No way
5. Appian - No way
6. Coriolis - Possible
7. Equipe - Slim
8. Quantum Bridge - slim
9. Tenor - No way
10. Gotham - gone

Just my take.
yomama 12/4/2012 | 7:38:27 PM
re: Boston Area Startups Slash Jobs What do people think the chances of these companies making it thru 2002 into 2003?

1. Crescent Networks
2. AstralPoint
3. Ellacoya
4. Quarry
5. Appian
6. Coriolis
7. Equipe
8. Quantum Bridge
9. Tenor Networks
10. Gotham Networks
HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE