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Headcount: Nice Job

Light Reading
News Analysis
Light Reading
7/28/2003

In Fort Worth last week, a man robbed a Wells Fargo Bank branch by placing a bag on the bank's counter and handing the clerk a note. The note threatened that a bomb would explode if he didn't come up with some cash. The note, which was left at the crime scene, was also printed on the back of the robber's resume.

The Headcount staff is pleased to present the robber, Frederick McDowell, with this month's "Nice Job" award for his resourcefulness, savvy, and conscientious effort to conserve paper. Way to go, Frederick. You da bomb!

On that note (har, har), it's time to review some of the past week's most interesting hirings and firings:

  • In the year's most unlikely matchup, access equipment maker Zhone Technologies Inc. is buying core optical switch maker Tellium Inc. (Nasdaq: TELM). This means some firings are probably on the way. Zhone employed 237 at the end of 2002 and Tellium had 183 as of March 2003, a drop from the 544 Tellium employed in January 2002. Zhone's VP of marketing David Markowitz says the company will keep Tellium's New Jersey office open, but acknowledges that there will be cuts to redundant positions. No word yet as to how many will be affected (see Zhone Cashes In on Tellium).

  • Earlier this month, PON equipment maker Terawave Communications signed a joint marketing agreement with Science Applications International Corp. (SAIC). It also cut "less than 16" of its engineers, according to Frank Lockwood, the company's VP of marketing. He says Terawave, at the same time, has added sales and marketing staff as it moves from being a development-stage startup to a vendor able to land some big carrier contracts.

  • A spokesman for Stratos Lightwave Inc. (Nasdaq: STLWD) says the company is consolidating its U.S. manufacturing operations to its Chicago headquarters. It will also keep a design center in Florida. One noteworthy office getting zapped is the facility in California, where two startups once lived. Stratos acquired Paracer Inc. in April 2002 for about $25 million in stock, and it bought Tsunami Optics in February 2002 for about $16 million in stock (see Stratos Buys Tsunami). About 40 jobs have been affected in the consolidation, and Stratos will hire about 10 people in Chicago to help it continue to make and market Tsunami's CWDM product lines.

  • Broadcom Corp. (Nasdaq: BRCM) still doesn't have a permanent CEO following Henry Nicholas's departure in January (see Big Day at Broadcom). Alan E. "Lanny" Ross, president and interim CEO, says the board has set high expectations for the post. "Since we all know there is no such thing as an Interim CEO, business continues as usual," Ross says, shortly before vanishing in a puff of logic.

  • Vitesse Semiconductor Corp. (Nasdaq: VTSS) axed its optical modules division last week, and it is also shutting its Colorado Springs fabrication facility, after failing to find a buyer for the plant. Vitesse says it will employ 740 by September 30, down from 830 this week.

  • Headcount finally heard from RHK Inc. regarding its recent management change (see RHK Changes CEOs). The new CEO, John Soden, phoned from Paris, where he was visiting a client, to say that RHK is indeed becoming more of an advisory firm. The company will still do market research, but mostly in the context of helping specific clients. Soden also confirmed that Cynthia Boucher, RHK's senior VP of marketing and chief information officer, has left. He says he'll assume her duties.

    Here's a summary of other industry appointments (and disappointments) from the past several days: Got some telecom workplace news items that we should be checking out? If so, send a note to [email protected] as soon as you can. Please do not include your resume.

    — Phil Harvey and Craig Matsumoto, Senior Editors, Light Reading

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    malakraday1
    malakraday1
    12/4/2012 | 11:42:36 PM
    re: Headcount: Nice Job
    When these carriers finally decide to upgrade their equipment in say 2011 ( I don't believe 2005 will be the year either) who will be left in America that makes the equipment?
    RouterOttawa
    RouterOttawa
    12/4/2012 | 11:42:35 PM
    re: Headcount: Nice Job
    When these carriers finally decide to upgrade their equipment in say 2011 ( I don't believe 2005 will be the year either) who will be left in America that makes the equipment?

    One world, er, word... Cisco.

    you will be assimilated.
    dljvjbsl
    dljvjbsl
    12/4/2012 | 11:42:30 PM
    re: Headcount: Nice Job
    http://www.breconridge.com/Pre...

    BreconRidge is buying part of Nortel's high speed module business and entering into a three year supply agreement with Nortel as well.

    BreconRidge will acquire about 100 Nortel employees in the deal. BreconRidge which was created a specilized manufacturing compnay will also acquire the design capability including personnel from Nortel for these modules. This appears to be a departure from BreconRidge's business model.

    BreconRidge will take over the Palladium Drve building that Nortel built in Kanata for $400 million dollars. Major portions of this building have sat empty sine it was built. Breconridge will consolidate all of tis operations in this facility.
    jeb_knucklehead
    jeb_knucklehead
    12/4/2012 | 11:42:30 PM
    re: Headcount: Nice Job
    When these carriers finally decide to upgrade their equipment in say 2011 ( I don't believe 2005 will be the year either) who will be left in America that makes the equipment?

    >>>>>One world, er, word... Cisco.

    >>>>>you will be assimilated.

    BAH, what does Cisco know about optics? Virtually nothing. Cisco are by far the weakest major systems vendor in optical. Cisco lacks the talent and experience necessary to pick up the slack. Also have you ever seen Cisco's prices? I'd love to see them get away with that robbery on a components or subsystems level. The margins that they enjoy at the systems level simply do not exist for components and subsystems. Sorry pal but you couldn't be more wrong.
    dodo
    dodo
    12/4/2012 | 11:42:29 PM
    re: Headcount: Nice Job
    The CFO, oops CEO is getting ready for Q'3 results.

    54 Million profitability in Q'1 based on discontinued business- hey the execs needed that bonus
    14 Million loss in Q'2
    YTD still profitable

    And only the shadow knows what the future reserves for the next 2 quarters.

    Wait and watch how the market evolves.
    single mode figure
    single mode figure
    12/4/2012 | 11:42:26 PM
    re: Headcount: Nice Job
    In order to survive startups will begin same startup marriages that occupy the same space. What will their children be like? If they can survive until carriers start a new buildout or another trend takes root. Terabeam is off-shoring much of their work and free space optics can occupy a needed space, who will they marry?
    dljvjbsl
    dljvjbsl
    12/4/2012 | 11:42:20 PM
    re: Headcount: Nice Job
    There are rumors circulating now that SS8 has laid everyone off in their Ottawa location except for two sales people. If this is true then the forest of empty office buildings on March Road just had a new addition.
    mrcasual
    mrcasual
    12/4/2012 | 11:42:20 PM
    re: Headcount: Nice Job
    It's not a rumour. It was in the paper today and officially confirmed.
    echo2
    echo2
    12/4/2012 | 11:42:12 PM
    re: Headcount: Nice Job
    In order to survive startups will begin same startup marriages that occupy the same space. What will their children be like? If they can survive until carriers start a new buildout or another trend takes root. Terabeam is off-shoring much of their work and free space optics can occupy a needed space, who will they marry?

    -----------

    I can’t say this will not happen, but I do not understand how it would help. As a buyer, will I be more confident in buying from them because they teamed up so they can layoff a few redundant employees and extend their lifespan a few quarters? Even when the carriers begin their next build out, they will need to be very careful with their money. They don’t replace all their gear every two years so they need their vendors to be around long term.
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