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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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exObserver 12/4/2012 | 10:04:25 PM
re: More Startup Setbacks in Texas They do not buy their stock options early. They wait until the day they sell them.

Taxes are a rich man's problem.

mordecai 12/4/2012 | 10:04:22 PM
re: More Startup Setbacks in Texas Miss_jessicaw-

Sorry to hear of your misfortune, and best of luck on the rebound. Care to comment further? Do you think it will stop at 20% or is the feeling that there will be deeper slashes?

Ottawa seems poised to become the 'photonics back-alley' versus 'photonics valley'. Nothin back here but us techno-hobos mulling around looking for free booze.

pilos1 12/4/2012 | 10:04:19 PM
re: More Startup Setbacks in Texas Layoffs at any startup are very painful given the dedication over the past months/years of most in such ventures. We are however in a new environment; the pendulum has swung towards the other direction i.e. complete pessimism. I fear that things will continue to get worse before they get better. Bottom line is that most of us in the start-up world will not succeed, and that is the way is should be. A successful start-up should be the exception not the rule.
WhiteKnight 12/4/2012 | 10:04:18 PM
re: More Startup Setbacks in Texas pilos1 wrote:

Layoffs at any startup are very painful given the dedication over the past months/years of most in such ventures. We are however in a new environment; the pendulum has swung towards the other direction i.e. complete pessimism. I fear that things will continue to get worse before they get better. Bottom line is that most of us in the start-up world will not succeed, and that is the way is should be. A successful start-up should be the exception not the rule.
--------------------------------------------------
It would be a shame if everyone took that same attitude, there would be no new technology developed. If the attitudes ever get to that point, this country is doomed as far as being a technology leader.
The best way to prevent so many failures is to purge the incompetentcy within the upper and midd management of the startup companies, which is what we are experiencing as we speak. I feel that when the dust settles from the bubble bursting, we will see some very focused and efficient startups come along. This, however, will take some healing time for the VC's that have been burned so badly in the past.
There is still plenty of money out there for startup ventures, but the people who control it are going to be more careful about throwing money at just any group that can sit down and come up with a business plan. They are going to want to see successful credentials from the principles.
likesInFighting 12/4/2012 | 10:04:03 PM
re: More Startup Setbacks in Texas Is Xalted is having problems leasing new office space, they can lease my garage, and two two room tents.

The terms are the $$$ must be paid in advance, and all utilities are paid in the tents.
doc21 12/4/2012 | 10:04:02 PM
re: More Startup Setbacks in Texas Anyone know anything about Luxn, they are still hanging around but there is no news about what they are doing, leads me to think that they must be sinking.
theanswer 12/4/2012 | 10:04:01 PM
re: More Startup Setbacks in Texas Does anyone living in the Richardson, Plano, Allen area want to get together and brainstorm ideas for a simple product that could make us a salary while the economy recovers? I have some ideas and with your ideas maybe we could come up with something easy to do and manufactuer. We don't need massive systems but rather ideas that are manageable, via work at home or a co-located place. Together we can develop a test product or solution for a vendor's needs today.
I have contacts with a professional mechanical engineer who owns his company and is looking to develop products.
They don't have to be telecom. Let's find a way to be self employed. Software & hardware.
972-754-6541
cyber_techy 12/4/2012 | 10:03:58 PM
re: More Startup Setbacks in Texas ..the cuts were applied to the firms installation & servicing staff. I heard otherwise; i.e. >80% of the layoffs occured within R&D. What are they trying to hide?
+++++++++++++++++++++++++++++++++++++++++++

Maybe these are the signs of time. Using R&D people to do installation. Should look good on the resume though.
optopuss 12/4/2012 | 10:03:58 PM
re: More Startup Setbacks in Texas Sorry you were impacted miss_jessicaw. I know how you feel;(I went through a very similar experience a few months ago). Ceyba's president was quoted as saying that the cuts were applied to the firms installation & servicing staff. I heard otherwise; i.e. >80% of the layoffs occured within R&D. What are they trying to hide?

Optopuss
<<   <   Page 33 / 33
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