x
Optical/IP

Mahi: Not Just Sushi Anymore

There are signs that Sequoia Capital partner Chris Rust is settling into a more permanent role as CEO of Mahi Networks Inc., a position he took with the "interim" title on November 15, 2001, after former Advanced Fibre Communications Inc. (AFC) (Nasdaq: AFCI) executive Gregory Peters resigned from the post. Sources close to the company say he's in there for the long run (see Peters Out at Mahi).

Rust is on the board of directors at Afara WebSystems, Nexsi Corp., and Santur Corp. in San Jose, as well as Turin Networks Inc. in Petaluma, Calif.

Light Reading has also gathered more information about what Mahi's been up to -- more specifically, on the product the company is calling the Mi7 Optical Transport Switch Router (OTSR). Those familiar with the company's plans say the Mi7 is a metro switch that combines the functions of DACS (commonly referred to as a "digital crossconnect"), Sonet ADM, Sonet switch, and Layer 2 switch, with scaleability to more than 500 Gbit/s. The product is designed to fit in the largest POPs carriers operate in each metro, where bandwidth is aggregated, switched, and put onto long-haul backbones (see A New Optical Taxonomy). The company has licensed routing software from Nortel Networks Corp. (NYSE/Toronto: NT), and it has bought 4-milliwatt tunable lasers from Agility Communications Inc.

The product is currently in trials with five carriers, Light Reading has learned. These include three CLECs, one RBOC, and one IXC. One source close to Mahi says the company has secured a deal worth between $20 million to $30 million to provide equipment to Qwest Communications International Inc. (NYSE: Q).

Mahi has been out trying to raise a third round of funding. In the spring of 2000, it closed its second round, worth $64.4 million, bringing its total funding to date to about $71 million. Sequoia, Benchmark Capital, Goldman Sachs & Co., London Pacific Group Ltd., Anschutz Investments, Williams Communications Group (NYSE: WCG), WorldCom Inc. (Nasdaq: WCOM), GE Equity, Comdisco Inc. (NYSE: CDO), Van Wagoner Capital, Berkeley International Capital, and Mitsui Corp. are Mahi's backers.

At last count, the company employed about 225 people. Last month Tom Giunta, Mahi's director of business development joined Ciena Corp. (Nasdaq: CIEN) as VP of engineering for its core switching division. Jim Nowack, who handled systems testing at Mahi, recently took a position in Ciena's metro switching division.

Mahi executives did not return calls seeking comment.

— Phil Harvey, Senior Editor, Light Reading
http://www.lightreading.com
Page 1 / 7   >   >>
The_Holy_Grail 12/4/2012 | 10:47:18 PM
re: Mahi: Not Just Sushi Anymore Any updates on the possible big contract Light Reading did an article on September 20, 2001? How come this was not discussed?

""""""""""""""""""""""""""""""""""""""""""""""""
http://www.lightreading.com/do...

After its funding round, the company supposedly had a valuation of $259 million. And just two months ago, rumors circulated that Mahi had closed a substantial third round of funding. Word also was that it had signed a $300 million contract with BellSouth Corp. (NYSE: BLS - message board) (see Mahi Secrets Surface ).
"""""""""""""""""""""""""""""""""""""""""""""""""
HarveyMuddSucks 12/4/2012 | 10:47:17 PM
re: Mahi: Not Just Sushi Anymore It wasn't discussed because, as usual, Light Reading has most of the facts up the creek. There are maybe one or two correct statements in the article, but I think this is probably the extent of it. People should take what they read on this web site with a grain of salt, it should be titled 'Light Rumours' rather than 'Light Reading'. Still, it's occasionally good for amusement...
lrdr 12/4/2012 | 10:47:16 PM
re: Mahi: Not Just Sushi Anymore That's the word I heard too.
Calix is having similar trauma.
omega3 12/4/2012 | 10:47:16 PM
re: Mahi: Not Just Sushi Anymore This looks like a blatant publicity attempt (probably with Mahi and LR in cahoots) with nothing absolutely to backup the claims. Mahi is in deep shit. Expect the company to close down within 6 months and a big layoff in the next 2 weeks.
elvislives 12/4/2012 | 10:47:15 PM
re: Mahi: Not Just Sushi Anymore I heard that Motorola was shutting down!!

Unless you like looking like an ass... add something to sustain your claims.
elvislives 12/4/2012 | 10:47:15 PM
re: Mahi: Not Just Sushi Anymore Why are you saying Mahi is in deep shit ? A big layoff in the next 2 weeks ? Says who ?

What do you have to backup YOUR claims ?

Maybe they do have that big contract... maybe just not with BellSouth...

By the way, you know that financial analysts have predicted 10 of the 2 last recessions... With the same methodology, you can claim that all startups will fail and you will be right for some of them.

How's your Lucent/Nortel portfolio doing, startup basher!
ThinkLogically 12/4/2012 | 10:47:14 PM
re: Mahi: Not Just Sushi Anymore Hey Omega since u love shooting your mouth off (does ur paymaster start with a C) tell me which claim are u claiming as false?
there were 3 claims in the article i saw-
1> rust was the new CEO
2>the Mi7 is a metro switch that combines the functions of DACS (commonly referred to as a "digital crossconnect"), Sonet ADM, Sonet switch, and Layer 2 switch, with scaleability to more than 500 Gbit/s.
3>company has secured a deal worth between $20 million to $30 million to provide equipment to Qwest Communications International Inc.

And maybe some other things that arent really big news. Which of these do you claim is false? Why do you claim it is false?
Do you have anything to backup your claims other than rumours you have heard?

Also if the company doesnt close down within 6 months and there isnt big layoff in the next 2 weeks will you post an apology out here or will you keep talking trash?

In case you dont reply i shall assume that like your comments your full of s****

dietaryfiber 12/4/2012 | 10:47:13 PM
re: Mahi: Not Just Sushi Anymore My comments are that Mahi has lost significant senior management and is continuing to do so. A deal with Quest is almost meaningless as Quest has actually no money to spend. So whether they get $20M over 3 years or $0, its not enough money to keep a 225 person startup going. They will need $100M+ to get to break even. There is tough sledding for them and others ahead.

dietary fiber
Tim Ber 12/4/2012 | 10:47:13 PM
re: Mahi: Not Just Sushi Anymore In case you hadn't noticed, the whole industry is being battered by "The Perfect Storm". It seems that any given component, systems, service provider company (Startup or not) has swirling dark clouds above it. If you listened to every rumor floating around, you could basically generalize that statement:

Expect <insert any="" company="" here="" name="" telecom=""> to close down within 6 months and a big layoff in the next 2 weeks.
</insert>
ThinkLogically 12/4/2012 | 10:47:12 PM
re: Mahi: Not Just Sushi Anymore This comment is more meaningful. Dietary - I appreceate your backing of your comments with some logical explanation and semblence of 2+2=4 thinking. Yes id say they need 70M in revenues to break even. But if what LR says is true theyre in trials with 5 carriers. The rumor i heard spoke of 2 RBOCs, 2 Ilecs and one CLEC. No RBOC or ILEC tests equipment without at least a more than playful intention of buying - especially in this market.Hence i would think that when the market improves they should be in a situation to make some money. Even in this gloomy time the metro segment is expected to experience +ve growth. Off course nothing comes without a clarification and im not implying they are out of the woods yet. Im just stating the +ve points as you summed up the -ve ones.
Page 1 / 7   >   >>
HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE