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Comms chips

Terago Soldiers On

You're not dead until you're cold and dead. That seems to be the case with Terago Communications Inc., a startup developing silicon for packet processing.

Two weeks ago, things looked grim for the chipmaker: According to reports in the local press, Terago shut down its Maple Grove, Minn., operations, where the majority of its staff was based, on Friday, May 31. Lack of funding was the obvious cause.

More than 60 employees arrived at work that day to find the doors locked, only to be told they had been terminated with immediate effect, says a report on www.twincities.com.

Now, however, it looks likely that Terago will find the funding it needs to survive, according to Bart Stuck, a partner at Signal Lake Ventures and also a board member at Terago. "We are seeing some funding activity that we did not expect, and we're seeing a restart activity," he told Light Reading. "Stay tuned next week and you'll see things happening."

"It's one of these unfortunate things where people who put up the money drive a hard bargain," he adds.

Terago surprised the industry earlier this year by announcing that it was the first company to ship an OC192 (10-Gbit/s) network processor (see Terago Springs a Surprise). But competition was not far behind, and now there are four or possibly more network processor vendors shipping silicon (see EZchip Sallies Fourth and Third-Time Lucky for Fast-Chip?, for example). This will certainly have contributed to its difficulty in raising money in what is already an unfriendly venture funding climate.

Signal Lake appears to be pulling out all the stops to save Terago. Two of its partners sit on Terago's board: Stuck and Michael Weingarten. Weingarten told the press that he believes Terago has the leading technology among network processors. He also has experience as a turn-around manager and Chapter 11 bankruptcy court trustee -- just the person a startup needs to get it out of a financial hole.

Terago executives did not wish to comment at this time.

— Pauline Rigby, Senior Editor, Light Reading
http://www.lightreading.com
BobbyMax 12/4/2012 | 10:16:05 PM
re: Terago Soldiers On It is surprising that VCs all over the country conbtinue to fund start-ups that have nothing new. There are many companies that have OC-48/OC-192 network processor.

Last year VCs invested over $40 Billion in start-ups. But many of these companies had nothing new.

One time there were over 100 optical networking component companies. No more than half a dozen of these companies would survive as there is no demand for these products.

Even with diminished sales and continuing declining value of their shares, optical companies continue to pay huge salaries and stock options that would a lot of us sick. For example, the CEO of JDS Uniphase made over $150 million last year. The company experienced a loss over $50 Billion dollars (if my memory serves me right). Greed and corruption is very rampant in the technology sector.

AAL5 12/4/2012 | 10:16:05 PM
re: Terago Soldiers On
GǣCorruption, greed, pessimism, doom and gloom, everybody but Bell Labs sucks Bla...Bla...Bla...Gǥ

Up your dosage of anti-depressants please Harvey.

AAL5


AAL5 12/4/2012 | 10:16:05 PM
re: Terago Soldiers On
Oops my apologies to Litewave, I didn't notice you had already posted a similar reply to Harvey. Sorry for being slightly unoriginal, you obviously had the same thoughts as I did when reading Harvey's usual drivel.

AAL5

Litewave 12/4/2012 | 10:16:05 PM
re: Terago Soldiers On Greed and corruption is very rampant in the technology sector.

Blah blah blah...put a corker on it Harvey!
RJC 12/4/2012 | 10:16:02 PM
re: Terago Soldiers On From the article:

More than 60 employees arrived at work that day to find the doors locked, only to be told they had been terminated with immediate effect, says a report on www.twincities.com.

Now, however, ... "We are seeing some funding activity that we did not expect, and we're seeing a restart activity. Stay tuned next week and you'll see things happening."



Let's see. I and all my coworkers arrive to find a lockout. ("We'll make sure the door doesn't hit you on the butt on the way out -- we won't even let you in!")
The next week, you call me and say I'm welcome to come back to my job again. Oh yeah, you'll "see things happening" next week -- the looting of the company by a bunch of workers who now know just how "Valued" they really are.


Disclosure: I don't work for Terago, nor do I know anyone who does. I'm sure they're hard-working, honest people who would never seek to harm their employer. Just the same, I'm searching for "Office Supplies" on eBay next week.

BobbyMax 12/4/2012 | 9:48:29 PM
re: Terago Soldiers On Dr. AAl5.

No heat e-mail. Keep taking some classes if you are qualified otherwise go to community coolege. No hate e-mails please.

If you need any help on AAL5, please let the community know.

Best wishes
AAL5 12/4/2012 | 9:48:23 PM
re: Terago Soldiers On
Bobby,

you are really quick at responding, the previous post to yours was dated 6/14/2002.

After reading your post could you please explain to me what the following terms mean?

"heat e-mail"
"community coolege"

Before being patronizing again and advising someone to take some classes, why donGt you take a few classes in English?

AAL5
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