When Optical Networks IPO's jump on it.
>March 13, 2000
Tech Center
Optical Networks Files for an IPO,
Changes Name to ONI Systems
By a WALL STREET JOURNAL Staff Reporter
WASHINGTON -- ONI Systems Corp., a start-up maker of fiber-optic communications gear whose backers include Cisco Systems Inc. and the venture-capital firm Kleiner Perkins Caufield & Byers, filed papers to raise $115 million in an initial public offering.
ONI, San Jose, Calif., had been known as Optical Networks Inc. The company said it is changing its name as part of the offering. The filing didn't indicate a share price.
ONI is among a crop of closely watched fiber-optic start-ups that hope to transform telecommunications networks. Shares of companies such as Sycamore Networks Inc. have soared following recent IPOs.
ONI's gear moves telephone calls and computer traffic more efficiently on fiber-optic lines around metropolitan areas. Fiber-optic technology has been widely used to carry information cross-country, but is just moving into local networks.
ONI began selling its first product last month. It plans to introduce a second product by June. Initial customers include Williams Communications Group Inc. and Britain's Colt Telecom PLC. Through the end of 1999, ONI had recorded less than $5 million in revenue and had accumulated losses of $52.3 million. In its filing with the Securities and Exchange Commission, the company said it expects continued losses, as it expands sales, marketing and research efforts.
Beside Cisco and Kleiner Perkins, backers include Mohr Davidow Ventures and Williams Communications. Williams Chief Technology Officer Matthew Bross sits on ONI's board, as does former Microsoft Corp. Chief Financial Officer Greg Maffei, who is now chief executive of 360networks Inc.
ONI Chief Executive Hugh Martin is former president of 3DO Corp., a maker of game software.
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