re: Will Nortel Pick Procket?Unlike many startups today, Procket is not hurting for cash. In June 2001, it raised $250 million, bringing its total to $272 million. With a headcount of 265, the company is estimated to still have about $100 million in cash on hand. ==================
This number seems unlikely. The rumor-number for burn rate at procket earlier this year was in the 6-7m range. There have since been layoffs, but between the headcount and the all-custom asics, I dont see how they can get below 5m.
Assuming they have been in operation since 2000, the total would be 42 months of operation. If their average burn rate is set at the low end (assume 5 mil/month), that means they would have already gone through 210 million out of 272 million. If the average is 6 mil/month, that means they would have gone through 252 million.
The rough calcuations would suggest between 62 million and 20 million left in the bank.
Either way, I dont see how any calcuation gets to 100 million left in the bank.
re: Will Nortel Pick Procket?they won't be around on their own at the end of the year. huge burn still, no major accounts and nortel couldn't sell an ip box even if it had a cisco label on it.
re: Will Nortel Pick Procket?they won't be around on their own at the end of the year. huge burn still, no major accounts and nortel couldn't sell an ip box even if it had a cisco label on it. ------------------
Their burn rate is so high that, apart from all the other reasons listed in the article, anyone who bought them would have to be willing to come up with around 60m/year (assuming 5m/mo) just to keep them going.
Its also unclear what someone gets with procket. For all their talk, they are far from having the necessary features for an edge router. And they don't have a stand-out value proposition as a core router.
re: Will Nortel Pick Procket?Skeptic, I have a high degree of respect for you, and my comments are not necessarily directed at you, but you seem to have an axe to grind on Procket, and are usually quick to speculate on their cash position. You have been incorrect roughly three different times on them.
But generally, these boards are packed with speculation and misinformation. It pisses me off. I NEVER post anything I don't know as fact, and generally try and point out the positive attributes of companies struggling to stay alive in tough times.
Procket has interesting technology and a large balance sheet, not to mention a very strong senior management team. There are 200 families depending on the company. Plenty of reasons to be positive on them.
So please don't make speculative comments on a company you don't really know that well.
re: Will Nortel Pick Procket?Neither side has a choice. Procket needs its stock liquid and valuation will recover when NT goes from 3 to 10. NT needs a router and Procket needs a partner.
This would be a good match.
FYI cash position is well over Skeptic's high number. FACT.
Enough with the speculation. If you don't have facts keep your mouth shut.
re: Will Nortel Pick Procket?I hate to sound like a broken record, but if NT needs IP so badly, why don't they buy AVCI, which is trading for cash? The way management is buying their stock back, they seem to think something is going to bail them out. If their products are no good, the stock is too high. If their products are at all competitive, it is too low.
re: Will Nortel Pick Procket?FYI cash position is well over Skeptic's high number. FACT.
Enough with the speculation. If you don't have facts keep your mouth shut. -------------- Thats an odd comment considering that the original article (lightreading) was NOTHING but speculation without fact.
re: Will Nortel Pick Procket?"But generally, these boards are packed with speculation and misinformation. It pisses me off. I NEVER post anything I don't know as fact, and generally try and point out the positive attributes of companies struggling to stay alive in tough times."
This statement is the exact opposite description of what you have been doing with your apparent war against cisco (your postings have been filled with non factual rabble rousing misinformation) and your incredibly subjective and derogatory statements against the likes of Lucent.
Amazing level of hypocrisy!
I have to give you that your first statement is spot on though.
re: Will Nortel Pick Procket?Procket has also forced a 10 % pay cut on all employes. They wouldn't do that if they had 100M in the bank. They must be worried about thier burn rate.
==================
This number seems unlikely. The rumor-number for
burn rate at procket earlier this year was in
the 6-7m range. There have since been layoffs,
but between the headcount and the all-custom
asics, I dont see how they can get below 5m.
Assuming they have been in operation since 2000,
the total would be 42 months of operation. If
their average burn rate is set at the low
end (assume 5 mil/month), that means they would
have already gone through 210 million out of
272 million. If the average is 6 mil/month,
that means they would have gone through 252
million.
The rough calcuations would suggest between 62
million and 20 million left in the bank.
Either way, I dont see how any calcuation gets
to 100 million left in the bank.