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SMLworld 12/4/2012 | 7:29:51 PM
re: Tellabs Nabs Ocular Carriers are driving the comparison between ADM's & DCS. They want more functionality with less boxes to manage, "distributed architecture." Vendors on the other hand, must balance and target their product functionality, scalability, and optimize pricing. Tough formula.

What Tellabs has is an embedded base. Customers want to hear a future migration story for 5500 that protects their investment. I believe that this is why they purchased Ocular.

Problem is, Ocular won't be competitively priced once Tellabs slaps on their margins.

lightmaster 12/4/2012 | 7:29:49 PM
re: Tellabs Nabs Ocular Pargon, according to their web site, has a god box that support: " SONET/SDH Add-Drop Multiplexer (ADM), high speed IP edge router, Digital Crossconnect System (DCS), 1/3 Multiplexer (M13), Integrated Access Device (IAD), DSL Access Multiplexer (DSLAM), Digital Loop Carrier (DLC), and Channel Service Unit (CSU).

So, of course they do everything that Ocular does. I think it also includes an integrated X-BOX and Nintendo game cube. Even giving them credit for everything they claim, its a small box, not the same scale as the others discussed here.

Metro Optix does have more of a comparable product with support for 10,000 VTs, but to do it you have to burn every switch slot in the box with multiple VT grooming cards. Ocular claim is that they do over 18,000 in one switch card.

All of the next-gen SONET boxes do a small amount of VT grooming (336 VTs is typical), but not on this scale.

Several newer startups seem to be chasing Ocular, but Tellabs claims in their calls that they found that Ocular was the only one (including Metro Optix, I believe) that had this kind of function working versus slideware.

The reality is that unless you are on the inside of this deal, everything else is just speculation until the deal closes and the financial guys start grilling Tellabs during earnings calls.

On paper, looks like a great deal for both.

kampar 12/4/2012 | 7:29:49 PM
re: Tellabs Nabs Ocular Paragon Networks also has such a feature in their new BROADway product line ...

Luminaria 12/4/2012 | 7:29:48 PM
re: Tellabs Nabs Ocular Well, Since they raised $20M before the most recent round, and from what I hear they were priced at 8 cents, that is 250 million shares right there. Add in the next round, founder's shares and employee options and you probably have 350 million shares and options.
Route495 12/4/2012 | 7:29:48 PM
re: Tellabs Nabs Ocular 50/60 mil shares @ 6/5 buck/share

just a guess ;)
Luminaria 12/4/2012 | 7:29:48 PM
re: Tellabs Nabs Ocular I know it is privately held. By my calculations they must have had over 300 million in outstanding shares and options. I am guessing that employees got about a buck a share for each of their 40,000 shares/options. I guess it's better than nothing.
lightmaster 12/4/2012 | 7:29:41 PM
re: Tellabs Nabs Ocular Some of you guys obviously have no idea how the financing of a startup works. Ciena had around 100M shares outstanding after their IPO, but certainly not after only 2 rounds of financing.
Typically, a startup in this phase would have between 20M and 50M shares outstanding.

Why don't you wait until the S-1 is filed, then you'll know for sure.

zipple 12/4/2012 | 7:29:41 PM
re: Tellabs Nabs Ocular Some of you guys obviously have no idea how the financing of a startup works.


Agreed. Let's add info to the pool.

1. Investors get preferred stock, employees get common stock.

2. The price of common is much lower than the price of preferred. There are a number of reasons for this, some accounting, and some reality. One reality reason is that the preferred stock owns a larger percentage of the company in the case of a low-value liquidation than it would in an ipo.

3. Luminaria's friend at $0.08 at financing was most probably common stock.

There is a possibility that the $0.08 was correct, and a big pile of shares were issued for some reason of convenience, and that the average employee saw ~$1/share. It's a new market, not everyone gets to be a zillionaire anymore. Hell, just having a job is pretty sexy these days.
tarzan 12/4/2012 | 7:29:39 PM
re: Tellabs Nabs Ocular The $0.08 is most likely the option price for employees and has nothing to do with price of the Series B preferred stock. It is extremely unlikely the company has more than 250 million shares outstanding - most start-ups after 2 rounds have less than 100 million and in many cases even less than 50 million shares outstanding.

We should find out in Tellabs next SEC filing.
cheekymonkey 12/4/2012 | 7:29:30 PM
re: Tellabs Nabs Ocular Aren't Alcatel and Tellabs supposed to be "leaders" in the cross-connect market? This move puts Alcatel way behind Tellabs in this space. How could they afford to let Tallabs beat them to the punch? I don't get it...nor does Alcatel apparently.
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