Quantum Bridge Stays the Course

BURLINGAME, Calif. -- At a time when both Wall Street and the public seem to have lost all interest in initial public offerings, one has to wonder about optical networking companies that are still registered to go public.

Quantum Bridge Communications Inc., a company focused on access products designed to bring optical bandwidth to office buildings and residential neighborhoods, is one such company. The company is staying the course because, as CEO and president Anthony Zona says, the "experts" may be wrong.

"The one thing I've learned about the market in the past six months is that the experts who say they know where things are going have been wrong," he told Light Reading, after his presentation here to the somber crowd at NGN Ventures (see Reality Bites at NGN Conference). "But we don't have to worry about being wrong or right so long as we're able to take advantage of where the market's heading." (See Quantum Bridge Aims for IPO.}

Zona adds that remaining in registration to go public -- even with the required quarterly financial updates and a corresponding tendency to muffle a firm's publicity efforts -- "is no big burden."

That's a minority opinion these days. According to recent data from VentureOne, a venture capital research firm, only five venture-backed firms went public in the first three months of 2001, while 40 firms withdrew their offerings (see Money Crunch Pressures Startups).

Upon withdrawing its IPO in March, OMM Inc. CFO Phil Chapman told Light Reading that, all other things being equal, "people don't like to be in active registration." He said keeping finances audited and posted, as well as cataloging every material event for the world to see, was a major pain (see IPO Window Shuts Tighter).

So does it hint at desperation if a firm's still in registration, even during the lousiest of IPO markets? Not at all, says Zona. Having announced a $102 million funding round one year ago today, Zona says Quantum Bridge has enough cash to last another year and adds that Quantum would raise a private placement round if need be (see Quantum Bridge Raises $102 Million).

"Now, if we were heading out on an IPO road show at this point, that would be a different story altogether," he says.

-- Phil Harvey, Senior Editor, Light Reading http://www.lightreading.com
tycon03 12/4/2012 | 8:32:50 PM
re: Quantum Bridge Stays the Course Looks like all the millionaires in waiting up in Mass. have a problem. If their PON solution is such a breakthrough certainly the weakening optical market should not be a major concern. For example Ciena and Juniper are still flying high. But he must be concerned that his product is not all it's cracked up to be. Why else would he remain in registration? Is is denial? He states he has enough cash to last another year, what happens after that?? We are never going to see the Technology Sector reach the heights it hit in 1999, so Tony why not go now? The truth of the matter is another one bites the dust. Nice try, tell your troops to circle the wagons. Maybe you'll get lucky and be bought, I doubt it. Don't listen to the experts Tony thats a good strategy. The last mile?? It's more like the "Longest Yard" I love Burt in that movie.
adobe2 12/4/2012 | 8:32:44 PM
re: Quantum Bridge Stays the Course I agree with you, QB was flying high last year, and now they realized that their PONs are not really that hot, and if you go optical, why would
you want to do PONs, look what happened to companies that separated themselves from the rest of the vendors in early 90s, one example is
Proteon, does not exist any more.

Now QB is targetting metro market, do they really think that, that side of the market needs another vendor, it's so crowded with vendors who are really struggling to score ONE purchase order, example Appian, and so on..
Another note: why is QB hidding their media coverages in their web.

optinuts 12/4/2012 | 8:32:35 PM
re: Quantum Bridge Stays the Course the only reason this story made it to the front pages is the prominent quantum bridge advertising section on LR.

the ceo and the other 2 vp's already made $5M each per the ipo filing. they can afford to stay the course.
jimbo59 12/4/2012 | 8:32:34 PM
re: Quantum Bridge Stays the Course tycon3, optinuts, adobe,
All valid points. I too had noted that you can't access the QB news any longer. I also noted this massive trolling of news items "QB and Corning in alliance"; "QB geared toward new product offering", etc. All coincident with their December IPO announcement.

Another interesting point that I've noted is that QB no longer sponsors the LR 'Quote of the Day'. Are they that cash strapped already?

However, I think the most telling issue is this statement from the LR article:

"But we don't have to worry about being wrong or right so long as we're able to take advantage of where the market's heading."

Don't worry about being wrong? To that, I say....DUH!
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