Caspian CEO Quits

SAN JOSE, Calif. -- Grahame Rance, CEO and president of Caspian Networks, resigned from the company this week to join SBS Technologies, a component maker. Today SBS announced Rance has been appointed its president and CEO, effective today. Rance’s departure from Caspian Networks was unexpected. Caspian’s board has appointed board member David E. Liddle interim CEO until a permanent replacement is named. Liddle is general partner of U.S. Venture Partners, one of the leading institutional investors in Caspian. The board has a number of promising candidates for the position and began interviews for a full-time replacement this week, with the goal of replacing Rance with a full-time CEO as quickly as possible.

“I’ve been involved with Caspian since its inception, and my belief in the company’s breakthrough technology and the impact it’s going to have in the market is stronger than ever,” said Liddle. “Caspian’s delivery of its technology vision has always been the company’s highest priority, and the company will continue its development unabated ... even in these lean economic times. We’re grateful to Grahame Rance for getting the company’s development on a fast track, and for emphasizing how customer feedback contributes to better product design.”

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ExNortel 12/4/2012 | 8:46:58 PM
re: Caspian CEO Quits Hey Insider1,

Heh, why doesn't this surprise me? He was, afterall, from Nortel, land of Empire Building, where people base their worth on how many people report up to them. Admins having admins, Managers have 1 report, directors having 1 or sometimes ZERO reports.

I wonder how the softswitch is coming over at Caspian...I mean, most of the Nortel engineers they hired didn't deliver a product at Nortel.

What? They ain't building a softswitch?? They are what? Building a core router? Wait....I got it....hire Voice and ATM engineers to do IP and BGP and ISIS and RIP...oh wait, they used OpenIP from Nortel, which Nortel canned recently.....and the beat go's on.

Man, glad I don't work at Caspian in MN, RTP, VA, Sillycon Valley, or at any one of their other offices....they are a startup after all with no revenue, but lots of offices? Funny me.

Another one down, take three off your Top 10 lists..Mayanaise, Zaaaaaaa(on)fire, and now Caspian. By the end of summer, clear off Jasmine Networks too, since Nortel ain't paying them the $50M beans they promised them too.

Man, the top 10 list may become the top 0 lists.

Oh, please don't put my companies name on that lists, it should be renamed the "Top 10 List of Companies To Fail Soon."

Ex, and loving it.

Lurking 12/4/2012 | 8:46:57 PM
re: Caspian CEO Quits Insider1,

How unprofessional. Why would you think it necessary to report to the world what you feel is insider information. I see by your web page you have a PR Director already and a press release providing the information that your company wanted to known. Why don't you go see him/her and apologize for you stupidity. If you are too much of a coward to do that maybe you could brag to everyone about your accomplishment. That way you can be exposed for the idiot you are and fired on the spot to keep you from leaking some actual valuable info about your companies technology in the future. The fact that you have posted this info and you seem to be an insider would concern me more as a potential investor than your CEO actually leaving.
Insider1 12/4/2012 | 8:46:50 PM
re: Caspian CEO Quits STFU
metoo 12/4/2012 | 8:46:49 PM
re: Caspian CEO Quits Wow, untrustworthy and vulgar. Your mother
must be proud.
Lurking 12/4/2012 | 8:46:49 PM
re: Caspian CEO Quits Thank You for validating my points on your inteligence level.
fiona 12/4/2012 | 8:46:45 PM
re: Caspian CEO Quits So how much can their last round of funding -- $86 million can last with their current burn rate?

1) Can they get the product out before the money runs out?

2) Will they conduct a fourth round of financing similar to Pluris?

3) Will the new CEO share the same philosophies with the VCs in having a "leaner" company?

4) Will turmoil at Caspian affect their potential customers faith?

mahadeva 12/4/2012 | 8:45:31 PM
re: Caspian CEO Quits Let's me do a very rough analysis of their cash flow. Let's say they have 350 employees at an average salary of $125k. That would be about $44 million in annual salary. Tack on an addition 30% for fringes, desktop equipment and office support for an amount of $13 million. Say they have 3 office locations at 25,000 sq feet each at $10 per foot per month. That would be an additional $9 million in lease charges. Adding all of that up gives about $66 in annual expenses or a burn rate of $5.5 million per month. They raised $86 million in November. Now probably they still had money in the bank before that fund-raising (no company raises money unless they have money). Let's say they had $14 million prior to their November fund-raising. That would give them about $100 million as of Nov 2000. Let's project that they need to survive at least 1 more year for the economy to turn around or until March 2002. That would be 17 months at 5.5 million per month or about $93 million. That would leave them with $7 million to spare. Now they will need funds for chip fabrication and other manufacturing outsourcing. I do not have the experience to estimate that. Input anyone? It seems that if they go lean and not hire anymore personnel, they can definitely run the company at the current level until the end of the year. The odds are they will do another fund-raising well before they are out of money. My guess would be sometime between July and November. If they can pull another round like number 3, they would be good to go through the end of 2002. If the economic situation is vastly improved by then, and if their product(s) are tested and marketable, and if they have some big players as customers, they could do an IPO sometime mid-2002. If they can't pull in the funds during a fouth round, look for them to be acquired sometime early in 2002.
Raj_ 12/4/2012 | 8:40:13 PM
re: Caspian CEO Quits GÇ£IGÇÖve been involved with Caspian since its inception, and my belief in the companyGÇÖs breakthrough technology and the impact itGÇÖs going to have in the market is stronger than ever,GÇ¥ said Liddle.

If this technology is going to have such a huge impact (even a small impact) why would Liddle's son leave his product management position with caspian? Sounds like there is trouble brewing over there...
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