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More Startup Setbacks in Texas

Plano, Texas-based access equipment maker Xalted Networks Inc. has filed for Chapter 11 bankruptcy protection. The company was founded in January 2000 and, at one point, had about 130 employees.

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
http://www.lightreading.com
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inlight 12/4/2012 | 10:07:39 PM
re: More Startup Setbacks in Texas I understand Metro-otpx bought a s/w company in India some time back, and moved much of its software development to India.

How are they doing? Any body knows?

IL
lr_fan 12/4/2012 | 10:07:38 PM
re: More Startup Setbacks in Texas Does anyone know why Pat Rockford left Photuris?
Lightwoman 12/4/2012 | 10:07:37 PM
re: More Startup Setbacks in Texas The word on Photuris is that they will go the big startup hall in the sky.
lr_fan 12/4/2012 | 10:07:35 PM
re: More Startup Setbacks in Texas Wow. I kind of thought they might be getting some traction. They are just like PacketLight and Tropic and Lightscape though. I think.
stuartb 12/4/2012 | 10:07:34 PM
re: More Startup Setbacks in Texas Wasn't that thing announced at Supercomm 2001! They must be out to break Cerent's record for delaying shipment of OC-192...

-Stu
knave 12/4/2012 | 10:07:33 PM
re: More Startup Setbacks in Texas
..but what about Sami?
mrackin 12/4/2012 | 10:07:27 PM
re: More Startup Setbacks in Texas Re India: the company they "bought" came with more cash than the initial purchase price. Its value was in the IP it had already developed; it only had a handful of people. It didn't move ANYTHING there. They had a RIF (29%) a month ago (including me).
Light-bulb 12/4/2012 | 10:07:26 PM
re: More Startup Setbacks in Texas Hey! What are you trying to say about Cerent? Hey I'll have you know we were right on track, it was all Cisco's Fault!
Honestly we never sold futures! Our Engineering team could have done it in 2000 with all Discrete components really... it could have happened... RF noise, backplane issues those were not real. :)

Cheerio,
wildcat20 12/4/2012 | 10:07:23 PM
re: More Startup Setbacks in Texas Rapid5 networks has closed it's operations in Richarson Texas. They had at one time about half of the company's employees in Richardson that did most of the platform development. The other half was in San Jose. There have been a good amount of layoffs in San Jose as well. I don't know how long this company will last.
theanswer 12/4/2012 | 10:07:22 PM
re: More Startup Setbacks in Texas They just had a big layoff within the last 2 months and expect more is sales don't pick up.
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