Telseon: Profitable in 2003?
Metropolitan services provider Telseon Inc. announced Wednesday that it has secured $20 million in new financing designed to fund it until profitability, which the company expects to come sometime in the first quarter of 2003. The funding came from existing investors, says CEO John Kane.
Late last year, the carrier did some aggressive cost cutting, including a layoff that was said to have affected more than 100 people, or half its staff (see Telseon: Running out of Road?). Now Telseon is saying it has secured 140 customers and will break even by the end of this year, achieving profitability early in 2003, which would contrast it with some financially troubled competitors (see Metro Providers Retrench).
Kane won't give specific numbers but says Telseon expects to double the amount of monthly recurring revenue it has between now and the end of the year. "We also expect to more than triple our total revenue for 2002 versus 2001," he says.
"We doubled our network footprint in 2001 from about 60 nodes to 120. We will probably come close to doubling that number of nodes again in 2002, but all of that infrastructure will be in existing markets."
Kane expects all of this to happen as the company adds more customers to its existing network, while not building as aggressively as it did last year to enter new markets (see Telseon, Dynegy in Metro Deal). The company sells wavelength and Gigabit Ethernet services to large enterprises and service providers (see Telseon's Mixed Metro Message). It also allows customers to resell its capacity through Telseon's channel partner program.
Telseon has raised $281 million in funding to date and about $75 million in vendor financing, of which it says less than half has been drawn down.
— Phil Harvey, Senior Editor, Light Reading