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Comms chips

TeraCross Shuts Down

Switch-fabric startup TeraCross Ltd. began shutting down this week, having decided the market was too brutal to carry on.

"We had decided to do that while there were still funds in the coffers," says Kurt Busch, vice president of marketing. Investors and management wanted to bow out while the company could still pay off its debts and provide its nine employees with final paychecks and severance, he says. "It wasn't like Pluris." (See Pluris Shutdown Confirmed.)

TeraCross managed to complete development of its GLIMPS-1000 chipset, but the market for merchant switch fabrics was too grim to justify continuing.

"The switch fabric market's just not a good place to be right now," Busch says. "We did our best to try to raise money, but we saw how difficult it was going to be."

Power X Networks Ltd. was an early casualty among switch-fabric vendors, and Zagros Networks fell more recently (see Power X Powers Down and Oath (#@%#!!) of Allegiance).

Based in Ramat Gan, Israel, TeraCross had raised $13 million in two rounds of venture financing. Backers included Argoquest Holdings LLC, Ascend Technology Ventures, Intel Capital, and Pitango Venture Capital.

— Craig Matsumoto, Senior Editor, Light Reading

BobbyMax 12/4/2012 | 11:48:18 PM
re: TeraCross Shuts Down TeraCross has been honest enough to recognize the market condition. They deserve our praise for not ripping off their investore. But in the US, the company will manage to stay in business until the last penny gone.

In spite lack of customer interest in swich fabric product, a lot of US companies are still continuing with the well known technology of switch fabrick as the VC money is still available to them. These companies will go away if remainder of the funds are frozen. How shameless we have become? How are value system is evoprating every day.
10Gig 12/4/2012 | 11:48:03 PM
re: TeraCross Shuts Down there are still a few more valley switch fabric who are yet to feign such an 'honesty' and call it a day (a bad one albeit)

atleast we saw a few real players emerge as winners in this arena over the past couple of years. kudos to them!
verstand 12/4/2012 | 11:47:53 PM
re: TeraCross Shuts Down But in the US, the company will manage to stay in business until the last penny gone.
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I won't generalize it this way, BobbyMax. Just off my fingertip, Onix declared to shut down with about $30M in its coffer and returned $25M back to its investors. And, there more cases like Onix. Onix was based in Richmond, CA. Please don't hint that we are not "honest" in runing a US hightech company, either. I start to feel gea and his friends resentment toward you.
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