re: Ciena May Be Eyeing Catenai have no clue about catena and its products, but at a strategic level this looks like a good way for ciena to spend its warchest - acquire companies with relationships with rboc's so that when the market comes back (read = rbocs start spending), they are embedded.
smart thinking, given they can get some really good deals in this market!
re: Ciena May Be Eyeing CatenaI wonder if zhone will just end up scooping the cash out of tellium and shutting it down.
I dont see either company as being very strong. I dont see what putting them together accomplishes except reporting a bigger combined loss every quarter.
Right on. Unless I am missing something from the Tellium product portfolio, I don't see the need for an optical switch for the access networks, considering what Zhone has kept from the acquisition of Nortel access business unit.
Looks like TELM's shareholders are getting the SHAFT - bigtime on this one. Zhone gets to pickup TELM's $150 mil and business for almost nothing. They also get to go public.
Another smooth move for Mory.
Bet you TELM's management get to make out like bandits.
Lightreading - here's a GREAT GREAT investigative report for you guys. If you have the right stuff
re: Ciena May Be Eyeing CatenaHow does this make sense, someone asked earlier?
Remember when Ascend bought Stratus? They sold the computer business and pocketed a bunch of cash, and kept the SS7 technology...Similar move here.
So watch them sell off the TELM switch, pocket a bunch of cash (my guess is around $50m), stay focused on their growing MALC business and grow the stock price without having to sell the company. Now you have a $100M company with a decent balance sheet trading at one times revenues, in what is emerging as the sexiest space in telecom. Sexy when you add up the triple play, PON, cable, DLC/BLC opportunities and lump them into the access/first mile/last mile category. Looks like a very attractive investment opportunity by comparison to the CSCOs and JNPRs and FDRYs of the world, all of whom are trading at multiples of 5X or more/revenues.
I think this was a brilliant move.
Mory Ejabat: love him or hate him, the guy's a deal making machine and a very shrewd businessman.
smart thinking, given they can get some really good deals in this market!
the cash out of tellium and shutting it down.
I dont see either company as being very
strong. I dont see what putting them together
accomplishes except reporting a bigger
combined loss every quarter.
Right on. Unless I am missing something from the Tellium product portfolio, I don't see the need for an optical switch for the access networks, considering what Zhone has kept from the acquisition of Nortel access business unit.
Looks like TELM's shareholders are getting the SHAFT - bigtime on this one. Zhone gets to pickup TELM's $150 mil and business for almost nothing.
They also get to go public.
Another smooth move for Mory.
Bet you TELM's management get to make out like bandits.
Lightreading - here's a GREAT GREAT investigative report for you guys. If you have the right stuff
Remember when Ascend bought Stratus? They sold the computer business and pocketed a bunch of cash, and kept the SS7 technology...Similar move here.
So watch them sell off the TELM switch, pocket a bunch of cash (my guess is around $50m), stay focused on their growing MALC business and grow the stock price without having to sell the company. Now you have a $100M company with a decent balance sheet trading at one times revenues, in what is emerging as the sexiest space in telecom. Sexy when you add up the triple play, PON, cable, DLC/BLC opportunities and lump them into the access/first mile/last mile category. Looks like a very attractive investment opportunity by comparison to the CSCOs and JNPRs and FDRYs of the world, all of whom are trading at multiples of 5X or more/revenues.
I think this was a brilliant move.
Mory Ejabat: love him or hate him, the guy's a deal making machine and a very shrewd businessman.
-billy
-------
Probably Lucent, Taqua Systems or HP :)
Mory will have them all in a bidding
war soon.
1. there will be battle scars
2. the cat will become use-less