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Optical/IP

$55 Million Falls in Lap of LuxN

SUNNYVALE, Calif. -- LuxN, Inc., a provider of multi-service, intelligent, metropolitan optical access network platforms, today announced that it has secured in excess of $55 million in debt and equity financing. Funds will be used to continue expanding LuxN¹s optical product offerings and to increase the company¹s penetration in international markets. With this new round, investments in LuxN are over $150 million. The Credit Suisse First Boston Technology Group acted as the sole placement agent for the equity financing, which was led by Firsthand Capital Management. Wheatley Partners, Berger Funds, Sands Brothers and GE Capital also participated in this new round of financing, joining previous investors such as New Enterprise Associates, U.S. Venture Partners, Menlo Ventures, Credit Suisse First Boston, Azure Capital, Thomas Weisel Partners, WR Hambrecht, Mitsubishi, Mitsui and Siemens.

"The success of this fourth round of funding is an extraordinary vote of confidence for our vision and technology, particularly in the current financial market environment," stated Tom Alexander, LuxN president and CEO. "Our backing by these top caliber private equity firms will allow us to continue our successful expansion domestically and internationally."

http://www.luxn.com
dw 12/4/2012 | 8:34:58 PM
re: $55 Million Falls in Lap of LuxN They seem to be doing extraordinarily well in spite of the overall economic conditions.
light_me 12/4/2012 | 8:34:57 PM
re: $55 Million Falls in Lap of LuxN
Hi DW,

Have they announced any customers? Just curious....

Light_me
OpticalValueLine 12/4/2012 | 8:34:55 PM
re: $55 Million Falls in Lap of LuxN As long as these new companies still boom, market will not bottom. There are too many similar guys in the crowded field killing each other.
lo_mein_noodles 12/4/2012 | 8:34:54 PM
re: $55 Million Falls in Lap of LuxN I guess you know who i'm betting on!! Go to Luxn's website to see customer wins ( over 30 customers) and more info about products. This is a great little company. ISO 2001 certified, NEBS compliant, PAYING CUSTOMERS...more funding in a brutal market! Unfortunate for them...they are the best kept secret out there today, they are on their 4th major release of product!Go LuxN Go!!!!!! Oh Yeah....did I mention they have PAYING CUSTOMERS
drone387 12/4/2012 | 8:34:52 PM
re: $55 Million Falls in Lap of LuxN What criteria do you use to kill off one of your startups at this point in time? The answer today from VCs seems to be customers. Do you have at least one big one? LuxN has MFN. Do you have enough diversity? It seems LuxN may have 30 customers although we only see a few on the web site. LuxN gets a fourth round of funds to make it into next year when the "telecom recovery" is supposed to happen. If the "telecom recovery" fails to happen, what then? I have a feeling it could get real ugly at LuxN because profitability may be the only criteria. A lot of CEOs seem to be promising profits in a year these days.
glassman 12/4/2012 | 8:34:46 PM
re: $55 Million Falls in Lap of LuxN Great points in your message, Drone387.

What do you think about these "other" vendors that are starting to get some traction within the industry...like Metro Optix, for example? Is there enough room in the market for a continued inflow of competitors?
Granted, the LuxN & Metro Oprix platforms look like they are exceptional products, but when providers aren't buying from Cisco, Nortel and ONI, why will they buy from a start-up???
Titanic Optics 12/4/2012 | 8:34:44 PM
re: $55 Million Falls in Lap of LuxN A few points about LuxN. Amongst the metro players, its box is fewer features/lower price. There is certainly room for it to play vs. Nortel, Ciena, and ONI as its market positioning is differentiated, and will continue to be so.

LuxN is more of an Access-Metro play (as opposed to metro-regional) and thus appears to play in the CLEC pond, which means a few things. One, it has many customers, none of which is huge. This is as opposed to the potential market for the LH and ULH guys, say, Corvis, which will have only a few customers with BIG contracts. The ULH customers are a "build it and they will come" game, as opposed to the metro guys who are "pay as you grow". So, LuxN may never tout a $500 million dollar contract, but they won't suffer through big stretch-outs, either. And LuxN may never really ramp its sales that well either if the hoped for market doesn't really materialize.

But the real question, which you raise quite well, is about this "magical" telecom recovery next year. I am not that clairvoyant to say that LuxN's target market will be very healthy next year or to say that the market will be weak. For their sake, I hope that the companies are doing well. But if not...
TDR 12/4/2012 | 8:34:38 PM
re: $55 Million Falls in Lap of LuxN Luxn has too much simple technology and box.
I wonder if they can get money, why Zaffir
can not? Zaffire has much better technology
than Luxn.
opticalman 12/4/2012 | 8:34:37 PM
re: $55 Million Falls in Lap of LuxN TDR,

The reason Zaffire can't do squat is because of the mis-steps and management carousel it has gone through. Cisco is proof that you don't have to have the best technology to own the market. Zaffire always touts their technology solution, but don't seem to execute well. I don't work for either company but have been exposed to people from both camps, and have to say that LuxN has the upper hand in terms of sales, customers, and strategy. Zaffire annnounces customers that are part of the Kleiner-Perkins food chain and look where these so called customers are now i.e., BroadBand Office.

The fact that Zaffire got rid of their initial sales team shows how they made good hiring decisions to begin with.
DCITDave 12/4/2012 | 8:34:36 PM
re: $55 Million Falls in Lap of LuxN http://www.lightreading.com/do...
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