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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Techplayer who wrote (15392)	7/18/2000 10:19:22 PM
From: Techplayer	Read Replies (1) \| Respond to of 21876

As I have indicated previously...so much for having a router...Carr is right. most of the HW staff is on the way to Axiowave. If the lightreading guy had a clue, he would know that Axiowave is going to attempt a long haul product using mems technology. For the record, Mukhesh is 98.5% hype, 1.5% fact. it is interesting that lightreading chose to give this person even a minute of its' time. PREVIOUS NEWS ANALYSIS JULY 18, 2000 Lucent Faces "Exodus of Nexabit Staff" -------------------------------------------------------------------------------- Lucent Technologies Inc. could be in for nasty surprise in the next few days as staff that came on board when it acquired Nexabit Networks, a terabit router startup, quit to rejoin their old mentor, Mukesh Chatter. Chatter has already left Lucent and has set up new startup, Axiowave Networks Inc., across the street from Lucent. And as of today - the anniversary of the July 19th 1999 completion of the Nexabit acquisition - many of Chatter’s former staff will have the financial freedom to follow him. “On the one year anniversary of the merger, everyone [from Nexabit] gets one year’s acceleration on their options,” says Harry Carr, chairman and CEO of Tellium Inc., an optical switch vendor. “Next week you’ll see a mass exodus from Nexabit. Many of them will probably end up at Mukesh’s new company.” Carr knows what he’s talking about. Prior to joining Tellium, he was vice president of data networking systems at Lucent, and Chatter’s manager. As a result, he’s familiar with the vesting period of Nexabit staff, and he also knows that many of them will probably be only too pleased to leave Lucent. The problem? Lucent has had a tough time fitting Nexabit’s IP solutions into its ATM-centric product line. “Mukesh had a problem with Curt Sanford [president of the Lucent internetworking systems group] who was running around saying ATM is great and IP is awful,” says Tellium’s Carr. Previously, Sanford was executive vice president and general manager at Ascend Communications Inc., an ATM powerhouse. So what’s Axiowave working on? Officially, the company is in stealth mode. So last week Light Reading sent two editors to pay an unannounced visit on the company’s new headquarters in Marlborough, Mass. They were met by an ebullient Chatter, but he would only say that the company is developing a product “for the core of the Internet.” However, Chatter did agree to give Light Reading a quick tour of the facility. Like Axiowave’s Web site, it’s still under construction. While there was sufficient floor space for a couple of hundred staff, only a handful of Axiowave employees were in evidence. That could change in the coming days. Lucent employees who make the switch would not have far to go. Industry scuttlebutt has it that some Lucent engineers have already visited Axiowave’s offices – to take advantage of their shower facilities after playing sports. Lucent is rumored to have subsequently built its own showers in order to discourage the fraternization. This latest twist in the Nexabit saga will be a painful one for Lucent, which desperately needs a Terabit router to compete with Cisco Systems Inc. “It’s not a pretty story. And it could get uglier,” comments Jeff McCarthy, general partner at North Bridge Venture Partners. McCarthy isn’t writing Lucent off, however. “They’ve lost a little of their mojo, but it will be a long time before they go away.” Lucent did not return calls.