More Startup Setbacks in Texas
Xalted has only announced one funding round, a $21 million Series A round, which included investments from BlueStream Ventures, Granite Ventures, Charter Venture Capital and Alliance Ventures. In February 2002, the Dallas Business Journal reported that Xalted had closed another $10 million round, and a company director said in March that Xalted was looking for another $15 million elsewhere to complete the round (see Xalted Axes Staff). In light of its bankruptcy, it's not clear whether Xalted ever closed its second funding round.
Xalted executives still won't say how much funding the company has closed to date.
The company announced in June that it had "expanded its U.S. operations to worldwide." Translation: It moved its software development to Bangalore, India, where technical labor is less expensive. At that time, it also announced plans to hire 70 more engineers in India.
In its bankruptcy filing, Xalted lists its estimated assets at between $500,001 and $1 million. Included in its list of creditors was a $4,000 payment for Xalted's Supercomm tradeshow booth.
"This is a positive note for our company," says Keith Bradshaw, Xalted's director of marketing. "We're still very much alive, and our investors are 100 percent behind us."
Bradshaw says Xalted now employs around 40 people in the U.S. and India and aims to have 80 or more on staff in the next six to 12 months.
Elsewhere in North Texas, White Rock Networks confirmed it has shed 25 percent of its staff, bringing the number of employees there to about 115, according to Andrew Knott, White Rock's VP of marketing and customer service.
Knott says White Rock is still a fully functional company and expects its OC192 Sonet add/drop multiplexer (ADM) to enter field trials within a couple of weeks (see White Rock Gets Coarse). ADMs allow lower-level signals to be dropped from a high-speed optical connection in a synchronous transmission network.
A source close to White Rock says the company has hired Pat Rockford, who previously did stints at Xalted and Photuris Inc., as its new VP of sales. Knott declined to comment on the rumor.
— Phil Harvey, Senior Editor, Light Reading