The Leading Light of Fiber Optics
When he was five, David R. Huber decided to dismantle the engine of his parents' washing machine. Disaster, right? Not even. Young David put it back together, and it worked. Four decades later, Huber still tinkers with machines. His new company, Corvis Corp. (CORV), makes telecom equipment that may change the economics of the communications industry. His optical gear can send voice or data signals 1,984 miles before they need to be amplified--more than five times as far as existing equipment. Huber says if phone companies buy from him, they'll need far fewer amplifiers, reducing network costs up to 90%.
That propelled Corvis' stock debut on July 28, in which it raised $1.1 billion--a record for an upstart with no revenue. Corvis now sports a $25 billion market cap, and Huber's stake is worth nearly $8 billion. ''The capital markets are valuing Corvis largely on the strength of Huber himself,'' says Yankee Group analyst Alex Benik. It's not a wild bet. Huber, 49, has quite a track record. In 1992, he founded Ciena Corp. (CIEN), a pioneer of technology that boosts the capacity of fiber-optic cables. He left five years later after a spat with Ciena's board. Huber founded Corvis with $300 million in Ciena stock and set up its offices 13 miles away in Columbia, Md.
Huber is passionate about his technology. ''Electronics won't be successful in providing the underpinnings of the Information Age. It really has to be optical,'' he says. With orders worth $550 million from phone companies, Huber will soon put his technology to the test. |
