Peters Out at Mahi

Greg Peters, CEO of Mahi Networks Inc., resigned on November 15, and his post is being filled, in the interim, by Chris Rust, the Mahi director who is a partner at Sequoia Capital.

"We're currently in an active search for a permanent CEO," says Ron Longo, Mahi's vice president of marketing, sales, and services. "That's the only management change that we have at this point." Prior to joining Mahi in 1999, Peters served as Advanced Fibre Communications Inc.'s (Nasdaq: AFCI) vice president of international operations.

Peters did not respond to a voice mail message left on Tuesday.

Mahi's product, the Mi7, is a metropolitan optical transport and routing box meant to replace several pieces of gear in a service provider's network by combining legacy transport like Sonet and TDM, optical transport like WDM, IP routing, switching, and MPLS functionality into one platform (see Mahi Secrets Surface and Scattered Signals for Tunable Lasers).

The company was founded in 1999, and its backers include Sequoia, Benchmark Capital, Goldman Sachs & Co., 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.

Mahi shrank to 225 employees after cutting 100 jobs just a few months ago. In the spring of 2000, it raised a $64.4 million second round of funding, bringing its total funding to date to about $71 million.

Mahi is current raising a third round of funding but would not comment on how far along it was in that process.

The company's other senior staff includes Colm O'Brien, Mahi's co-founder and director of product management; Abe Shocket, senior optics product manager; Mark Thomas, director of optical networking; and John Spencer, regional director of product marketing engineering. Its board members include Sequoia's Rust and Benchmark's Andy Rachleff.

- Phil Harvey, Senior Editor, Light Reading
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pardoned_turkey 12/4/2012 | 7:32:41 PM
re: Peters Out at Mahi Doesn't this young feller Chris Rust have half a dozen other comapnies to tend to? His track record is tribute to the excesses of Silicon Valley in telecom investing over the past 3 years.
rbkoontz 12/4/2012 | 7:32:37 PM
re: Peters Out at Mahi Mahi is Chris Rust's baby. He came up with the idea, the founders, and the funding. Rumor has it Rust was removed from Mahi's board by senior management at Sequoia a couple months back when he let Peters nearly run the company into the ground. Now, with Peters' removal, Sequoia is telling the young Rust "go clean up your mess" as interim CEO and sell this bucket of bolts off for whatever you can. Let's not make it look like a fire sale.
poster 12/4/2012 | 7:32:37 PM
re: Peters Out at Mahi what's the word on the street with Polaris. it seems all these multi-service switch vendors are having a rough time - are these guys any different?
opticaltalent 12/4/2012 | 7:32:37 PM
re: Peters Out at Mahi
Rumor has it that Mahi's product is not up to industry standards, feature function poor, the hardware is old, and it is twice the price of its competitors.

Same old, same old...heavy on the story light on the delivery.

Best of luck Mahi!
lo_mein_noodles 12/4/2012 | 7:32:33 PM
re: Peters Out at Mahi I think this article should be named "Mahi Peters out!" ....drums please.
lr_monger 12/4/2012 | 7:32:32 PM
re: Peters Out at Mahi or "Grilled Mahi-Mahi"
knave 12/4/2012 | 7:32:29 PM
re: Peters Out at Mahi
I really wonder about VC people who would invest in a company named after a fish? What are we mixing with our Prozac these days? P.s. I have this really great idea... it does ATM, Frame and switches light, has no backpane, does all IP RFC, past present and future....
op_engr 12/4/2012 | 7:32:28 PM
re: Peters Out at Mahi Most CEO's work on running their companies. Others work on their Golf game.
let-there-be-light 12/4/2012 | 7:32:24 PM
re: Peters Out at Mahi "....Most CEO's work on running their companies. Others work on their Golf game...."

What's the difference? I thought it was the same thing?
ipsantacruz 12/4/2012 | 7:32:23 PM
re: Peters Out at Mahi MahiGÇÖs story among other failing startups and even big names like Lucent proves what happens when people with no clue start running the show. I suggest they go back to selling ice cream and encourage engineers to take more active role on business and high management side of things. Until engineers start to come out of their protective shell and start criticizing and questioning these big mouths and donGÇÖt let them to bs them around stories like this will repeat again and again.

I thought I read right here a couple of months ago that Mahi got rid of its entire optical team and along with it Mark Thomas, director of optical networking and Abe Shocket, senior optics product manager when it laid off 100. Then how come their names are still mentioned among the senior management in this article?
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