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Optical/IP

Atrica Raises More Cash

Atrica Inc. says it has raised another $17 million in funding -- its second funding round in a year and a half.

Intel Capital, the investment arm of Intel Corp. (Nasdaq: INTC), joined its standing investors -- Accel Partners, Ascend Technology Ventures, Benchmark Capital, Innovacom (the venture capital subsidiary of France Telecom), Gemini Israel Fund, and St. Paul Venture Capital -- in the round. Israel's Challenge Fund also participated.

In February 2002, Atrica raised $75 million, bringing its total to $117 million (see Atrica Attracts $75M). Atrica CEO Vivek Ragavan said then that the cash would take the company to profitability.

Atrica officials say the company isn't profitable yet. Executives say they're using the additional $17 million as working capital to expand manufacturing facilities to meet growing demand for its products, especially in Asia.

Atrica has built a Layer 2 Ethernet switch specifically designed for carrier metro networks. It claims to have shipped more than 50,000 ports to customers in the second quarter of 2003, and it has announced four customers: France Telecom SA (NYSE: FTE), Al-Pi Telecomunicacions in Spain, Hokkaido Telecom Network (HOTnet) in Japan, and Broighter Networks Ltd. in Ireland (see Atrica Plugs Into France Telecom, Optimising Cost Control & Profitability in Telecoms, and Atrica Supplies Irish). It’s also rumored to be winning a big deal with Reliance Infocomm Ltd. in India (see Atrica Closes in on Indian Deal).

Michael Kennedy, managing partner at Network Strategy Partners LLC, says the new funding round may make it more difficult for Atrica to be acquired. The company has raised $128 million. Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA) bought Vivace Networks for only $135 million (see Tellabs Snags Vivace for $135M); Alcatel SA (NYSE: ALA; Paris: CGEP:PA) paid $150 million for TiMetra Networks (see Alcatel & TiMetra Seal the Deal); and Ciena Corp. (Nasdaq: CIEN) snagged WaveSmith Networks Inc. for $158 million (see Ciena Nabs WaveSmith).

“I was shocked to see that they are raising more money,” Kennedy says. “My guess is that they had to do it. A large partner or acquirer wasn’t available, so they needed to build out their manufacturing to fulfill orders. It would be easy if Alcatel bought them and handled that, but my guess is they weren’t available.”

However, Atrica's ability to keep attracting new investors signals that it is still convincing some that it can go it alone. The $500 million Intel Communications Fund has focused on investments in components and software companies with a few early-stage systems startup investments here and there. In the past seven months, it has only invested in two other later-stage startups aside from Atrica: Optical Solutions Inc. in December 2002 and Ikanos Communications Inc. in February 2003 (see Intel Invests in Optical Solutions and Optinel Adds Dragon).

Though the Intel/Atrica connection might seem strange at first glance, Michael Howard, co-founder and principal analyst at Infonetics Research Inc., says Intel has a lot to gain from the successful deployment of metro Ethernet. For example, it is one of the biggest manufacturers of Ethernet interface chips used on Ethernet switches and routers, not to mention the other chips it sells to Ethernet gear makers.

“Intel is supporting one of its customers with the hope it will become a bigger customer,” Howard says.

Intel officials aren’t as blunt about their interest in Atrica. Instead, they say that the company is looking to promote the entire ecosystem of Ethernet.

“In general we’re trying to enable the deployment of optical Ethernet,” says Gary Wiseman, marketing director for optical platforms at Intel. “We invested in Atrica in order for the company to speed up development of optical Ethernet solutions and bring them to the market more quickly.”

— Marguerite Reardon, Senior Editor, Light Reading

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gea 12/4/2012 | 11:45:55 PM
re: Atrica Raises More Cash BobbyMax:

All your base are belong to us.
BobbyMax 12/4/2012 | 11:45:55 PM
re: Atrica Raises More Cash No matter the amount of money Atrica raises, its long term survival is very questionable. Because of Mr. Raghvan selling the useless company to Redback, it would be cery difficult to sell Atrica to another company. What is going on at Atrica"
Iipoed 12/4/2012 | 11:45:53 PM
re: Atrica Raises More Cash Whyiswhy. Right on,could not agree more.
whyiswhy 12/4/2012 | 11:45:53 PM
re: Atrica Raises More Cash Geeeeez louieeez gea, get a life and just ignore Booby.

Your posts are becoming more annoying than his, all the more because we all know you have brains. And you risk a TOS violation to boot by going after his posts without something intelligent to say.

Booby is a poor Chinese intelligence officer (there's an Oxymoron for ya') just trying to justify his ricebowl, lucky his bosses do not understand English.
BobbyMax 12/4/2012 | 11:45:52 PM
re: Atrica Raises More Cash Dear "Dr.* Gea:

You have been harassing me for a long time. Please learn how the same people, whose performance and actions were less than honorable, are circulating around the industry. This simply means that the selection process is not sound. Everything is kept secret until one makes some effort to learn about these guys.

"Dr." Gea, I am repeatedly have expressed my concerns regarding the appointment of CEOs and other management employees based on nepotism and corruption and not any merit based system. Thid method has corrupted the integrity of our system. Nowhere is this process more visible than in California. California has become like a third world country where corr4uption is very rampant.

"Dr." Gea, the process of selection that we have today has no integrity. It is corrupt and is spreading like fire. This corruption takes p0lace in government, industry and academics. I am simply tired of this process as it is sinking our country in oblivion.

"Dr." Gea, beingng a very good technical writer; you can express my thoughts in a very potent form.

If you enough attention, "Dr." Gea, you can see the corruption in Lucent, H-P, Xerox, AY&T, and Telcordia, etc. We have become very insular and are not paying enough attention to governnance process.

Thank you, "Dr." Gea.
Tim Ber 12/4/2012 | 11:45:52 PM
re: Atrica Raises More Cash Gea,
Keep up the good work.

BobbyMax,
All your base belong to us.
gea 12/4/2012 | 11:45:44 PM
re: Atrica Raises More Cash Booby:

You continue to present yourself as some kind of industry whistleblower. The fact is that we all know there are major problems with the way business is done in the US today, and there's plenty of corruption. Your pointing to anyone and everyone with your accusations while NEVER presenting any FACTS or EVIDENCE (or references) is not only counterproductive, it's libelous.

A good example is your claim of corruption at Telcordia. Although I never really loved the place while I worked there (1995 to 2000), I don't think anyone sees Telcordia as 'corrupt'. SO let's see your prove your assertion. Give references, times, names and dates. Telcordia is a big monopolistic dinosaur that really has little clue about how to do business in a competitive market, but I see no evidence of corruption.

Your rants and tirades are tiring, and I rarely read them. As "BoobySpeaks" proves, one does not need to read your posts to know what you will say.

So until you start coming up with some cogent reasons for your acusations, "All your base are belong to us."
optical_ranger 12/4/2012 | 11:45:42 PM
re: Atrica Raises More Cash I totally agree with gea here. I worked at Bellcore (now Telcordia Technologies) from 1987 until 1994 and there was NO corruption. In fact, I know of one case in which an executive director was let go for padding their meals on expense reports.

Booby,

Granted this country was founded on Free Speech but if you hate it SOOO Much, Just Leave! Also, keep in mind, if you always trash some company, etc., then nobody is going to listen to you when you actually have something relevant to say (grammar aside).

Optical Ranger
zettabit 12/4/2012 | 11:45:38 PM
re: Atrica Raises More Cash Wow!

gea has elicited a response from BoobbyMax. And that response reveals a lot! Applying my past FBI psychologoical profiling training to this, one can deduce:

- BoobbyMax does have a breaking point. However he is timid and scared to be show his real anger. Which means he could become dangerous if he could get his tormentors under his direct control (thank god for anonymous posts).

- His ego could no longer tolerate the persitent and mindless attack on his credibility by gea. This underlies a feeling of self-rightousness.

- This means BoobbyMax actually thinks that his points are valid. Given that his posts are in fact usually more rants than observation, and his acusations baseless rather than factual, it means that BoobyMax lives in some form of fantasy world.

- He sees his prognostication and accusations as championing the otherwise suppressed truth in a corrupt industry. This belies a deep messiah complex, which is consistent with the assessment that he lives in a self-defined illusionary world.

- Booby's endless rants and comment's seem consistent with a person who has probably lost his job several times, through no fault of his own (RBOC down-sizing?).

- His consistent baseless attacks on California seem to indicate that he has never lived there. In addition they would appear to be retliatory, probably for a past wrong (maybe he never got a job he interviewed for out there) or out of personal jealousy (his past high school rival is now a silicon valley millionaire). He exhibits classic symptoms of a persecution complex attributed to "California", as if that state as a whole was responsible for his past difficulties.

- He probably is not a technical nor business trained person. Probably has no more that a high school degree but "learned on the job". His average intelligence is probably above average, but his processing of information is skewed by his messianic and persecution complexes.


More updates will be posted as warranted by future observations. Posters will be warned of any pending "explosive" behaviour from Booby in case it appears that he is stocking up on guns and ammo.
FinBurger 12/4/2012 | 11:45:35 PM
re: Atrica Raises More Cash Re: Bellcore

(alumnus '88, '96-'00... its a long story)

Don't forget about the VP who forged checks!

Evidently, when they set up the company in 1983, the finance trolls forgot that you're supposed to left-justify the dollar amount on the checks tight against the dollar sign. So, Mr. VP would take an expense check for $ 103.45, slip in in the typewriter, and peck himself a check for $12,103.45 (!)

He did it a couple of times before he was caught. He was fired, and thenceforth, Bellcore had the most secure checks around. Getting burns sure does sharpen you up.

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