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Coree Cuts Back

Light Reading
News Analysis
Light Reading
8/28/2001

Coree Networks Inc., one of the Iris Group companies, felt the sting of the economy's slowdown this week. The majority of the New Jersey-based core switch maker's staff has been let go, Coree chairman H. Michael Zadikian told Light Reading on Tuesday. The company's development efforts have been winnowed down to a small group of engineers so Coree can preserve its cash, he says.

After deciding that the market for Coree's MPLS-based switch wouldn't open up until 2002 or 2003, Zadikian says the company's directors decided to revisit how the company was building the switch, with the idea of possibly incorporating newer components and other technologies. One key difference in Coree's development this time around, Zadikian says, will be that the company will use "off-the-shelf" switching chips rather than trying to build its own.

"We've decided to reset the program, aim for 2002 or 2003, and take advantage of [technology] advances," he says. In conjunction with its new product plans and the grim funding environment, Zadikian says, Coree began "a substantial reduction in work force."

Zadikian didn't specify how many were let go. As of February 2001, when Coree announced its first funding round of $30 million, the company employed about 50 people (see Coree Networks Raises $30 Million).

Coree's investors include Hook Partners, Mayfield Fund, Sevin Rosen Funds, and Lightspeed Venture Partners (an investor in Light Reading).

"You have to adapt to the change in the market environment," Zadikian says. "If you don't, you're gonna die."

The decision to cut back at Coree also came because it was the last company formed in the Iris Group -- which includes Metera Networks Inc., Latus Lightworks Inc., and Iris Labs -- and, therefore, its product was not as far along in development.

Though they were formed and funded separately, the Iris Group companies hold to a common network vision -- dubbed the Optical Data Network Hierarchy (ODNH) -- and common network management software. The gist of ODNH is that the core stays dumb and fast, network intelligence remains at the network's edge, and wavelengths are handled in larger groups so they're easier to manage (see Iris Group Shuffles Executives and Iris Group Unveils Network Architecture).

The other companies in the Iris Group are still on track, and each expects to ship products next year, Zadikian says. There are fundraising efforts underway for each company, but Zadikian declined to go into details. He says Metera and Latus employ between 120 and 140 people each.

Zadikian also implied that none of the other Iris Group companies were in immediate financial trouble. "The companies raised a lot of money in their Series A rounds -- about twice what is normally raised."

- Phil Harvey, Senior Editor, Light Reading
http://www.lightreading.com

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ZAPPED
ZAPPED
12/4/2012 | 7:53:54 PM
re: Coree Cuts Back
Coree is the next to feel the crunch of VC's pulling away. And unfortunately there will be more in central Jersey! Or elsewhere? I could be mistaken but didn't it sound like they only got one round of funding! One could only wonder what startup could be next? Maybe Kirana Networks?
manoflalambda
manoflalambda
12/4/2012 | 7:53:49 PM
re: Coree Cuts Back
Coree is the next to feel the crunch of VC's pulling away. And unfortunately there will be more in central Jersey! Or elsewhere? I could be mistaken but didn't it sound like they only got one round of funding! One could only wonder what startup could be next? Maybe Kirana Networks?

How 'bout Alphion (aka Optosphere). Rumor suggests they recently ousted their CEO/founder and the HDW VP. Any news?

Salute,
Manoflalambda
nj_pistols
nj_pistols
12/4/2012 | 7:53:48 PM
re: Coree Cuts Back
Given that Tachion is out, looks like Coree is out, who is left in NJ? Seems like this area is going to be saturated with out-of-work optical and routing people especially given Lucent's recent layoffs.

Any news about Village Networks? They have yet to publicly announce a customer. The stealthy Jedai Broadband networks is equally as quiet these days. Others who fall into the quiet category include: Photuris, Internet Photonics, Xebeo, anyone else?

downreading
downreading
12/4/2012 | 7:53:47 PM
re: Coree Cuts Back
How is Innovance doing?
What are their prospects after
the optical down slide?
bv66a
bv66a
12/4/2012 | 7:53:45 PM
re: Coree Cuts Back
Village Networks laid off 10% of its workforce last Thursday, in what seems more like a management vendetta against people who they dislike! IGÇÖm surprised LR hasnGÇÖt picked up on it. Maybe itGÇÖs because theyGÇÖre advertising on this site???

They havenGÇÖt announced a customer because the buffoon in charge of sales has not been able to get any traction with any customers, has not gotten one real trial going and has not finalized one partnership since he came on board last year around this time. Maybe the fact that the box and the CEOGÇÖs trade-secret algorithm do not work as advertised has something to do with it.
themaninblack
themaninblack
12/4/2012 | 7:53:45 PM
re: Coree Cuts Back
Still grinding the axe I see. Waiting for the MIB to land? Rumor has it that he has two or three CEO offers on the table. Of course, the smart money is betting that this a fabrication, just like all his other fabrications...
dodo
dodo
12/4/2012 | 7:53:44 PM
re: Coree Cuts Back
http://www.ottawa.siliconvalle...

looks like another optical start-up is suffering in SiliconValley North
ajo2
ajo2
12/4/2012 | 7:53:44 PM
re: Coree Cuts Back
I guess there is nothing illegal about taking money from one startup and using it to fund others that can't get funding.

They may have raised twice the normal amount for series A, but if they burn through it twice as fast due to expensive equipment and higher than average salaries, do you not end up in the same sinking boat?

hobbit
hobbit
12/4/2012 | 7:53:42 PM
re: Coree Cuts Back
> How 'bout Alphion (aka Optosphere). Rumor
> suggests they recently ousted their
> CEO/founder and the HDW VP. Any news?

ceo/founder still there and they haven't
fired anyone else either ... perhaps you are
thinking of internet photonics
whose new ceo did fire their hardware vp
(chap came from lucent) along with a bunch
of other folks a little while back. heard
they, like tachion, loaded up on the sales
side prematurely.
nj_pistols
nj_pistols
12/4/2012 | 7:53:41 PM
re: Coree Cuts Back
Interesting that Internet Photonics might be in trouble...I heard that another optical spin-out from a large company in the area has also recently fallen through before it even got off the ground.

Re: Coree: weren't they the ones saying
"40G is for sissies" at Supercomm?
I suppose they are eating their words now!!
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