Cable Tech

Quantum Bridge Withdraws IPO

This is the story of a bullish company turned bear.

Quantum Bridge Communications Inc., which makes optical access gear (see Quantum Bridge Moves Beyond PON), today announced it has withdrawn its registration statement with the Securities and Exchange Commission for an initial public offering of its common stock.

"As a result of the market conditions, we have decided to withdraw our registration at this time," said Tony Zona, president and CEO of Quantum Bridge, in a statement issued by the company.

The move is peculiar -- not because the IPO is being withdrawn, but because of the timing. Earlier in the year, when Nasdaq was declining below 2000 and a number of other registered companies were dropping out of the IPO race, Quantum's Zona remained adamant that Quantum Bridge had the goods to complete the offering (see Quantum Bridge Stays the Course).

A month later, Quantum Bridge is pulling out -- after Nasdaq has rebounded 40 percent from its yearly low. The company is now citing "market conditions." Go figure.

The withdrawal also comes one week after the Tellium IPO cast a glimmer of light on IPO prospects. Today Tellium Inc. stock is trading at 21.60, up 50 percent from its offering price of $15 per share.

— R. Scott Raynovich, Executive Editor, Light Reading
iprsvp 12/4/2012 | 8:22:27 PM
re: Quantum Bridge Withdraws IPO that they have a offer from big optical vendor?
adobe2 12/4/2012 | 8:22:26 PM
re: Quantum Bridge Withdraws IPO It means that at Quantum Bridge we are lowering
our arrogance level since we can not really pick
up our minds to which market we are shooting for,
(is it ATM, is it POS, is it Metro) because we really don't know,
and since we have nothing (revenue wise) to show except bunch of hypped-up press releases, we think
we should withdraw our IPO, and maybe soon we should close out operations.
Another thing, I onder if Mr. Zona still thinks that inventing something over a pizza will still solve the telecom problems.???

Photonboat 12/4/2012 | 8:22:23 PM
re: Quantum Bridge Withdraws IPO >>at Quantum Bridge we are lowering
our arrogance level<<

I assume you don't really work there, but I appreciate the satire. Compared to that of other PON/access oriented firms, the top management of this firm came off as arrogant, as if QB was already a $10B market cap company. Some of the original rank and file that I worked with on occasion there were more straightforward, though.

I once compared this firm to a firm in the Bay area (won't name it) where after a visit, I remarked to my peers about the president--isn't ____ refreshing? You get the idea that he can be credible with both investors and his own engineers, and he even acknowledges the overall capital markets condition and justifies his future plans in light of a bursting bubble. It's quite a contrast.

QB is a quality firm, and perhaps so is Mr. Zona. If they revamp, lose some of their arrogance, and acknowledge the landscape they play in they'll do just fine. The era of hype in this industry is over, its all about value now. If you can deliver on your promises, then you'll be fine. If not...
jimbo59 12/4/2012 | 8:22:23 PM
re: Quantum Bridge Withdraws IPO Perhaps they finally came to their sense at QB and realized that another upstart's (Salira) PON offering (which is ethernet based unlike QB's PON which is ATM based) would prove to be a formidable, cutting edge contender... Amazing how ATM continues to be a four letter word...the protocol everybody loves to hate!


Has QB actually shipped any product? I understood them to at least have signed contracts under agreement.
adobe2 12/4/2012 | 8:22:22 PM
re: Quantum Bridge Withdraws IPO Author: Photonboat

No, I don't work there, I rejected an offer
from QB two years ago, and the main reason
was because of arrogance I saw from their management.

Some great engineers working over there with top talent from Wellfleet, and Bay.

tet109 12/4/2012 | 8:22:19 PM
re: Quantum Bridge Withdraws IPO Since Quantum has only been shipping product for about eight months I doubt they have enough sequential revenue per quarter to go public. The IPO market has changed my firend. So my bet is they pulled the S1 to start another funding exercise. I have never dealt with Quantum but from what I hear through some Cisco and Nortel contacts is that Comcast is deploying a lot of their gear, most major carriers are testing their product, and any competition is a year behind. I guess time will tell as with all of these two year old start ups. Are you so upset with Mr. Zona because he didn't hire you ?

fhe 12/4/2012 | 8:22:15 PM
re: Quantum Bridge Withdraws IPO I'd think layoff is inevitable in QB. The last round of funding was almost a year ago, and they must have burnt some significant $ after moving into the pricy Andover site.

The management also could not decide which approach to go for, ATM? Ethernet? PON? Metro? There are different camps in the company all trying to push for their ideas... I've also heard there have been QB employees' resume floating around in other companies.
allidia 12/4/2012 | 8:22:15 PM
re: Quantum Bridge Withdraws IPO given the negative tone of their release. It is becoming a prerequisite to garner more funds. My guess based on their last round of financing is 20% force reduction mainly hitting sales,marketing, and customer support. This is becoming standard protocol (Kestrel today and Tenor and Ellacoya last week).
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