Fujitsu Network Communications Inc. (FNC) has kicked ailing CoSine Communications Inc. (Nasdaq: COSN) out of its merry band of equipment partners.

CoSine yesterday announced that it's mostly done with employing people (see CoSine Cuts to the Bone). Today Fujitsu announced it's mostly done with reselling CoSine gear.

CoSine had been one of the companies under FNC's FASST umbrella, a marketing moniker that stands for the Flexible Architecture for Subscriber Service Termination portfolio (see FNC Finds FASST Friends).

"The Fujitsu FASST strategy no longer includes CoSine solutions, given yesterday's announcement," says an FNC spokesman "During these early days of the rollout of FASST to our customers, we have been focused on selling and marketing the entire FASST portfolio, and have engaged several customers with optical Ethernet and multiservice migration solutions. The managed IP service edge solutions, based on CoSine products, have longer sales cycles."

FNC says it hasn't sold any CoSine boxes yet. But FNC says if it had sold something, it has "sufficient safeguards and protection built into our reseller contracts such that we would have been in the position to continue to support their network and these products."

In June, FNC announced it had struck deals to resell gear from Atrica Inc., CoSine, and others as a way of helping it establish a position as a broadband data services vendor.

In connection with the reseller arrangement, CoSine issued FNC warrants to buy up to 254,489 shares of CoSine's common stock, according to Securities and Exchange Commission (SEC) filings. It's not clear that FNC ever purchased CoSine shares.

— Phil Harvey, News Editor, Light Reading

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