Jasmine Networks: Disconnected

Jasmine Networks, one of many startups in the crowded metro optical switching market, has officially closed its doors, say sources. The company has been struggling to stay afloat for almost a year and just yesterday bid the last of its employees good-bye.

Calls placed to David Robert, chief operating office and acting CEO, and to David Frazee, vice president of legal affairs and corporate secretary, were met with messages saying that their phone lines had been disconnected. While the company’s Website is still up, its corporate phone number only reaches voice mail.

According to a source close to the company, the remaining 50 employees in the company’s San Jose, Calif., office were told yesterday that the company would be closing. Their last official day was yesterday. The source also says that employees were given little to no severance. Rumors had been circulating since October that Jasmine’s days were numbered (see Rumors Rampant as Startup Woes Mount).

In March, Light Reading reported that the company had slashed its workforce by roughly 25 percent, leaving about 180 employees (see Is the Bloom off Jasmine?). It had also closed its Richardson, Texas, facility and sent Venkata V. Chalam, vice president of engineering, and Ravi Dattatreya, chief executive officer, packing.

Sources say that Jasmine’s demise results from a deal gone bad with Nortel Networks Corp. (NYSE/Toronto: NT). Back in the summer of 2000, Nortel had agreed to resell the Jasmine product. So Jasmine altered its product focus and concentrated on building an OC48/OC192 multiplexer to fit into the optical transport product portfolio Nortel had acquired from Qtera. A year later, when Jasmine finally got its product to market, Nortel found itself in deep financial trouble and cut the deal.

Without any other customers on board to take up the slack, the company hasn’t generated any revenue or been able to raise new funding.

— Marguerite Reardon, Senior Editor, Light Reading
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Route495 12/4/2012 | 10:59:46 PM
re: Jasmine Networks: Disconnected It was on LR Top Ten list.

I hope LR does not choose my company for this honour ever ;)

optigirl 12/4/2012 | 10:59:46 PM
re: Jasmine Networks: Disconnected From an old LR story about Jasmine's Way to Wall Street: The few people who have been briefed by Jasmine have been wowed by its story. GÇ£This is a kick-ass company, and it seems to have appeared out of nowhere,GÇ¥ says Scott Clavenna, president of PointEast Research and director of research for Light Reading.


reoptic 12/4/2012 | 10:59:45 PM
re: Jasmine Networks: Disconnected Believe it or not:

jimmy 12/4/2012 | 10:59:45 PM
re: Jasmine Networks: Disconnected A friend of mine who works for Ceyba told me the entire company just took a forced 25% salary reduction; usually the first sign of trouble......
opticaltalent 12/4/2012 | 10:59:43 PM
re: Jasmine Networks: Disconnected
Ceyba is one of the most well funded start ups around...look at their VCs. They are the largest investment of their VCs. They have tons of cash and are making great in roads at some major carriers. Look for them to make a big splash!!!

And no I do not work for Ceyba!!!
twisted pear 12/4/2012 | 10:59:42 PM
re: Jasmine Networks: Disconnected What I heard from a friend who also works there was quite the opposite. My contact told me that they are all getting a bonus soon!
opticaltalent 12/4/2012 | 10:59:42 PM
re: Jasmine Networks: Disconnected
Jimmy...do you work for a competitor and trying to start false rumors to give Ceyba bad press or what??? I am with Twisted Pair on this one.
CheekyChappy 12/4/2012 | 10:59:41 PM
re: Jasmine Networks: Disconnected
I heard it was not Ceyba but that other, less well funded Ottawa startup Innovance who had the 25% pay cut AND laid people off - now that is a bad sign.

coherence 12/4/2012 | 10:59:41 PM
re: Jasmine Networks: Disconnected heard indirectly from a friend.Anybody can confirm that?
xcp 12/4/2012 | 10:59:39 PM
re: Jasmine Networks: Disconnected I am wondering if the ranking makes any sense any more !!!
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