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nagoglight 12/5/2012 | 12:16:05 AM
re: Ciena Wants WaveSmith for $170M Assume they will really get VZ for 20mil for the next 3 years. So it's 40 mil for next 3 years, now assume they will get more contracts and total revenue for next 3 years is 80 mil.

The burn rate at wavesmith is 30 mil/year (avg salary is more than 100k), so in next 3 years there will still be a 10 mil loss for Ciena. After 3 years, many other DSL products will come to market and the price will drop much more or the cable will win over DSL.

What does Ciena get out of this deal? I think Ciena is desperate, I wonder how long it can survive? It does have lots of cash.

> The founders of WS are to be commended for their vision
> and execution of that that vision which has become a
> reality.

There's a lot of founders to commend. Better keep the victory celebration to under 20, or the money left in the bank will dry up and take down 170 mil to something more familiar.

> Say what you will about the amount it sold for,
> but I guarantee the price won't be $0.00/share.

But it will be close. The "certain employees" and double dip investors will be happy though.
roxymusic 12/5/2012 | 12:16:03 AM
re: Ciena Wants WaveSmith for $170M We all know that Ciena gave some cash last year to Equipe and WaveSmith. If Ciena buys WaveSmith, I wonder what this does to the Equipe deal then? Does anybody know what is going on lately at Equipe. Usually not a good sign when your VP of Engineering leaves?
wilecoyote 12/5/2012 | 12:16:03 AM
re: Ciena Wants WaveSmith for $170M I think this is the best news out of the startup community, in possibly two years. And what's even better is that it's mostly true. Wavesmith is a formula that others should replicate. Maybe they'll write a book and ship it to the West Coast so some of our startups can get a clue.

The problem is that they partnered with Ciena. I think Ciena is run by an absolute bafoon. The only deal they have made that did them any good was Lightera, and now they're making moves to kill the golden goose with a lightweight engineer running the division. It pisses me off to see great startups ruined by idiots in public companies who don't know what they're doing.

Wavesmith, was selling your soul for a lousy $5M investment worth it? And don't tell me you loved Ciena's channel. They don't have the ILECs either. All they have is a balance sheet. Watch the Wavesmith team bail in exactly one year following the transaction.

Word to the wise: work with Ciena but hedge your bets and look at Tellabs and Alcatel or others to take you to market.

Still, other than selling its soul to Ciena, you have to congratulate Wavesmith on a job well done.
whyiswhy 12/5/2012 | 12:16:00 AM
re: Ciena Wants WaveSmith for $170M Screwed founder just let go before big exit deal? Sounds like grist for a lawsuit!
optigirl 12/5/2012 | 12:15:56 AM
re: Ciena Wants WaveSmith for $170M I agree that news like this should give some hope to companies still fighting to survive. I don't know this is more a warning to Lucent, et al to smarten up and fly right than an endorsement of WS. Time will tell.

Oh, and have you heard anything about the bafoon has been carving up his sales force having axed the SBC account team and is now going after Verizon's. Got it from a good source from someone in the know who claims that there is a major shakeup in the works over there.
seen_the_light 12/5/2012 | 12:15:55 AM
re: Ciena Wants WaveSmith for $170M
Screwed founders? We're talking about WSN, not Gotham. Try to keep up...
10gliteguy 12/5/2012 | 12:15:53 AM
re: Ciena Wants WaveSmith for $170M optigirl. One point, if they are buying WaveSmith, they will inherit a sales team that has actually been able to sell something to SBC. I took your post as one more sign that the deal would occur.

Actually did occur: http://biz.yahoo.com/bw/030409...

Good job to light reading for getting it one day early.
optigirl 12/5/2012 | 12:15:52 AM
re: Ciena Wants WaveSmith for $170M Maybe but I am not hearing it that way and besides, what does WS know about selling DWDM and crossconnects to RBOCs? And, is WS going into metro areas or greenfield?

tired 12/5/2012 | 12:15:51 AM
re: Ciena Wants WaveSmith for $170M Has anybody else heard the rumours about Ciena talking to Lantern about a possible acquisition of an RPR vendor?

Would make sense since it would give Ciena a working solution for a technology they don't have yet in an emerging area...

Although, I guess since LR hasn't heard this one, it's probably just gossip.
optigirl 12/5/2012 | 12:15:50 AM
re: Ciena Wants WaveSmith for $170M RPR????? Why would anyone want to acquire that? AT&T made an announcement but nothing is likely to come out of it.

Then again, knowing Ciena's taste in acquistions that don't pay for themselves, maybe you are on to something here.
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