& cplSiteName &

Zhone Takes Top Turkey Award

Light Reading
News Analysis
Light Reading
11/28/2003
50%
50%

Zhone Technologies Inc. has captured the top slot in Light Reading's Turkey Awards, a list of the telecom industry's biggest howlers in the past year, given on Thanksgiving Day in the United States.

Zhone was named No. 1 Turkey for its reverse merger with Tellium Inc. (Nasdaq: TELM). As Light Reading's award nomination notes, both Zhone and Tellium have been remarkably adept at losing money, and their reverse merger has raised questions about missing cash (lots of it).

By coincidence, Zhone issued a press release late yesterday that gives some clues to where some of Tellium's cash has gone -- towards paying off loans, tax bills, and other expenses of Tellium's former execs, totaling more than $37 million (see Zhone Forgives Exec Loans, Exec Payoffs Dog Zhone/Tellium Merger and 2002 Top Ten: Fat Cats).

Other Top Ten Turkeys in Light Reading's list include:

  • Riverstone Networks Inc.
  • Corning Inc. (NYSE: GLW)
  • Redback Networks Inc. (Nasdaq: RBAK)
  • Schlumberger Ltd.
  • Lucent Technologies Inc. (NYSE: LU)
  • ADC Telecommunications Inc. (Nasdaq: ADCT)
  • LM Ericsson (Nasdaq: ERICY)
  • Siemens AG (NYSE: SI; Frankfurt: SIE) To find out why they got a Turkey Award, please click on this link.

    — The Editors, Light Reading
    (10)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    AAL6
    50%
    50%
    AAL6,
    User Rank: Light Beer
    12/4/2012 | 11:13:12 PM
    re: Zhone Takes Top Turkey Award
    'nuff said :)
    techoriginol
    50%
    50%
    techoriginol,
    User Rank: Light Beer
    12/4/2012 | 11:13:09 PM
    re: Zhone Takes Top Turkey Award
    I couldn't agree with you more. Gobble Gobble.

    These bozos have done nothing to help the US economy, jobs, the customers with a better product or anyone for that matter, except themselves. So what they have an ugly data card provisioning tool (ZM_) or an outdated line concentrator. They want to be the last mile solution. This is like Michael Jackson self proclaiming himself the king of pop. Zhone: We'd all be better off if the Zhone turkeys would outsource themselves back to Iran. We don't need them. Gobble Gobble.

    And this is my humble opinion.
    BobbyMax
    50%
    50%
    BobbyMax,
    User Rank: Light Beer
    12/4/2012 | 11:13:06 PM
    re: Zhone Takes Top Turkey Award
    It should be evident that Zhone could not have gone public.This provides a dimple way to cashout the stocks and just disappear with millions of dollars. This will start to happen as soon as the time is right. The whole thing has been planned by Zhone very skillfully.
    WiserNow
    50%
    50%
    WiserNow,
    User Rank: Light Beer
    12/4/2012 | 11:13:05 PM
    re: Zhone Takes Top Turkey Award
    Zhone: We'd all be better off if the Zhone turkeys would outsource themselves back to Iran. We don't need them. Gobble Gobble.
    ----------------------------------

    Ah please. Let's not be silly. Mory has been in the US longer than many of us have been alive. With Schwartzenegger elected Guv'nor, it is clear that CA is in favor of imported leadership. I haven't seen any mention of Zhone going off-shore for engineering talent. That makes them unusual these days.

    What shocks me is how fast the Tellium cash is disappearing. I wonder if the Tellium shareholders had full disclosure on the extent of Zhone debts? Now that Zhone is a public company, the SEC should be taking a close look at them.

    *** The shenannigans that worked with Ascend during the bubble are no longer tolerated. ***

    Looking at the Zhone investors listed in their public filing, you see the old crony names, including Sidgemore and McGinn. I bet those fat cats have taken advantage of this liquidity event to pull their millions out before a SEC investigation tanks Zhone's stock.
    Iipoed
    50%
    50%
    Iipoed,
    User Rank: Light Beer
    12/4/2012 | 11:13:05 PM
    re: Zhone Takes Top Turkey Award
    "It should be evident that Zhone could not have gone public.This provides a dimple way to cashout the stocks and just disappear with millions of dollars. This will start to happen as soon as the time is right. The whole thing has been planned by Zhone very skillfully."

    Bm-you're an idiot
    drone387
    50%
    50%
    drone387,
    User Rank: Light Beer
    12/4/2012 | 11:13:03 PM
    re: Zhone Takes Top Turkey Award
    No sales but plenty of cash.

    Sycamore?
    sevenbrooks
    50%
    50%
    sevenbrooks,
    User Rank: Light Beer
    12/4/2012 | 11:13:02 PM
    re: Zhone Takes Top Turkey Award

    The whole point for a Tellium shareholder is to remain at the table.

    Think of it this way. If you were invested in Tellium at the time of the acquisition, you were gambling. To take the cash out of Tellium, would be like cashing out a losing position at a roulette table. By allowing Zhone to take over Tellium, at least these guys still have a shot at recovering their money. No matter how slim that shot is, its a better shot than cashing out and going home.

    Now one can argue that this is a sensible investment strategy or not. But given that one was invested in Tellium, I think the term oxymoron applies.

    seven
    technonerd
    50%
    50%
    technonerd,
    User Rank: Light Beer
    12/4/2012 | 11:13:01 PM
    re: Zhone Takes Top Turkey Award
    Zhone was obviously a turkey from the very minute it began. Nice to see that LR eventually discovered it.
    bo knows optics
    50%
    50%
    bo knows optics,
    User Rank: Light Beer
    12/4/2012 | 11:12:58 PM
    re: Zhone Takes Top Turkey Award
    "I haven't seen any mention of Zhone going off-shore for engineering talent. That makes them unusual these days."

    That's because zhone has no need of engineers.
    They are a clearinghouse for start-ups. Just collect the technology that exists and fire all creators. Nice way to build job loyalty.
    Contracts are a minimum requirement for zhone employment.
    Passenger
    50%
    50%
    Passenger,
    User Rank: Light Beer
    12/4/2012 | 11:12:14 PM
    re: Zhone Takes Top Turkey Award
    Bobby Max, Light Reading missed it's biggest opportunity, to name turkey of the year, YOU!
    Featured Video
    Flash Poll
    Upcoming Live Events
    September 17-19, 2019, Dallas, Texas
    October 1-2, 2019, New Orleans, Louisiana
    October 10, 2019, New York, New York
    October 22, 2019, Los Angeles, CA
    November 5, 2019, London, England
    November 7, 2019, London, UK
    December 3, 2019, New York, New York
    December 3-5, 2019, Vienna, Austria
    March 16-18, 2020, Embassy Suites, Denver, Colorado
    May 18-20, 2020, Irving Convention Center, Dallas, TX
    All Upcoming Live Events