Coree Cuts Back

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
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venu_m_j 12/4/2012 | 7:25:55 PM
re: Coree Cuts Back Do u work at Kirana Networks. Are there any openings. I used to work at Acorn Networks, which shut down as an result of which I lost my Job.

I would really appreciate if u respond at [email protected]

opticalc 12/4/2012 | 7:50:08 PM
re: Coree Cuts Back
Even worse than Hiroshima/Nagasaki !!
Osama escaped the Okhlahoma, but can not escape now.
HarveyMudd 12/4/2012 | 7:51:23 PM
re: Coree Cuts Back It is sad when companies are formed with the express purpose of cheating the investors. The company founders stay on the payroll as long as they can. Then they move on to establish other start-ups with the express purpose of staying on the payroll.

VCs are not able to monitor or weed out these kind of founders.

There are other start-ups, especially in Callifornia, that cheat VCs and other investors.
ZAPPED 12/4/2012 | 7:51:29 PM
re: Coree Cuts Back Not that much people on this thread will appreciate
As a departure from my usual messages. I just thought I would bring the following. We need to unite against the terror that has befallen our country. This is Pearl Harbor and should be dealt with in the same way, This is an act of war! It is a day that will live in infamy. And if Bin Laden is responsible he should be erased from this planet forever at NO EXPENSE
Knightmare 12/4/2012 | 7:51:34 PM
re: Coree Cuts Back It's not Kirana 2, huh? Funny, but the original founders who started Tachion are the same gentlemen that started Kirana. You have Satish, Sunil and John K. Same players...same game.
ZAPPED 12/4/2012 | 7:51:34 PM
re: Coree Cuts Back It's not Tachion-2???
Come on your last post sounds like everything that everybody heard at Tachion...What makes you think that this situation is any different??? Same old promises and same old people...REPEAT, REPEAT, REPEAT. Need I say more
calpole 12/4/2012 | 7:51:35 PM
re: Coree Cuts Back I am amazed to see the wisdom of couple of guys,
asking about the situation of Kirana, at
Light reading. I will be glad, if that fool
does not join Kirana. But for a couple of guys,
who are interested to join Kirana, here are some basic facts:

[1] There is no financial crisis at Kirana, it has learnt from the mistakes of other start-ups.
[2] Kirana is enjoying unique advantage of being
last in the line of optical start-ups. Unlike
other start-ups, it has no problem of critical
talents. It has entered into the market
after measuring the market.
[3] Kirana is not Tachion-2. Only a handful people in the
company are from Tachion, does not mean it is
Tachion-2. By this logic, every other start up is
Lucent-2 or 3 or N. Kirana has people from
all other major companies. If, I go by the ratio,
it would rather be called Lucent-2 rather than
[4] At this point of time, Kirana is confident of
what it is doing, because Kirana has all required experience and talents to excecute its
planning. And it has enough funds and talents to do it.

xyz 12/4/2012 | 7:51:41 PM
re: Coree Cuts Back aragog wrote

This is Tachion-2: same management, same
employees, and worse, a loser CTO (from
Lucent) ......

It is even worse than you think. The Management at Kirana are the guys who couldn't EVEN MANAGE at Tachion (if you can believe that). It is worse than Tachion 2 - It's the orginal losers on steriods !!!. Rumor has it they are running out of money fast -- someone speak up -- TRUE or NOT ? WHAT WAS BESSEMER THINKING ??????? FUND THESE GUYS ?????
ZAPPED 12/4/2012 | 7:51:43 PM
re: Coree Cuts Back Opticalc sounds like he/she is from California?
You know, those people that think the world ends at the Sierra Nevada's. Dispite the emergence of Ca. telecom just remember, the think tanks of NJ are still alive, it was born here and I can't help it if you can't see above those mountains. Remember the old days ( the 60's & 70's) whose area code was 201 ( first and formost, DC was 202)
I can't think for the life of me why the CA. people think they have it made? Is it the weather?
Don't think they have anything else, except car chases and drive by shootings, hey see that one this week when the guy from Long Beach stoll the tow truck and ran it until it caught fire? What a wonderful place? been there, done that, couldn't wait to leave to back to the East Coast
simontemplar 12/4/2012 | 7:51:44 PM
re: Coree Cuts Back

Isn't Metera, Latus and Iris Labs independently funded? Can Zadikian take money from one to feed the others?
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