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Technology Stocks : Zhone Technologies (ZHNE) -- Ignore unavailable to you. Want to Upgrade?

To: Bargain Hunter who wrote (1)	8/21/2003 2:14:39 AM
From: Dee Jay	Read Replies (1) \| Respond to of 9

transcript of last conference call by Tellium 7/28/03 which includes participation of Ejabat and CFO of Zhone as well: marketwatch.com I can't disagree that the cash position of Tellium brings quite a bit to the table vs that of Zhone. At the same time it should be noted that Zhone has now made 9 strategic acquisitions of companies and their technologies which is the major thrust of their business plan: "Opportunities continue to present themselves, and Zhone continues to execute on its business model of growth through both internal development and acquisition" said Jeanette Symons, CTO and Vice President, Engineering for Zhone. "This two-pronged strategy allows Zhone to rapidly and cost-effectively expand its best-in-class product offerings - thereby increasing the value proposition to our customers". (from the July 9 2002 press release related to the acquisition of vPacket Technologies) More from that release: "This transaction represents Zhone's seventh acquisition, and expands on what is already the richest selection of last-mile interfaces and protocols in the industry. This flexibility allows for more efficient, manageable and cost-effective delivery and support of broadband access and services. Zhone's Single Line Multi-Service (SLMS™) architecture provides a blueprint for carriers to consolidate copper, fiber, and coaxial physical loop plants into a single integrated infrastructure supporting multiple transport options and multiple services with a common management model. The financial terms of the deal were not disclosed." And from November 1999 there's this about Zhone's funding: Zhone Technologies Announces $500 Million Equity Investment New Company Redefines the Business Model for the Development, Delivery, and Support of Leading-Edge Telecommunications Equipment OAKLAND, Calif., November 2, 1999 - Zhone Technologies, a newly formed company founded by seasoned communications executives, announced today it has raised more than $500 million in startup capital the largest equity financing ever raised by a communications equipment startup to execute on its plan to become a new breed of equipment provider with a new vision of product delivery and support for telecommunications carriers worldwide. Principal investors include Kohlberg Kravis Roberts & Co. (KKR), Texas Pacific Group, Inc. (TPG), and New Enterprise Associates (NEA). Credit Suisse First Boston (CSFB) acted as the placement agent in the funding round. Zhone plans to rapidly create critical mass by using the funds to augment organic development with the acquisition of applicable technologies and expertise from both private and public companies. The company will combine existing solutions with Zhone intellectual property to create a product portfolio that is purpose-built to supply multi-million-user next-generation networks with a rich array of voice, video, Internet, and entertainment services cost effectively. "Most startup companies today are caught up in a funding cycle that limits their product vision and slows time to market," said Mory Ejabat, chairman and chief executive officer of Zhone Technologies. "They use iterative funding rounds to first develop technologies, then create sales and support channels, and finally to expand their product set in sequential fashion. Zhone's strategy is to deliver a total solution very rapidly by taking advantage of existing technologies and expertise to fuel parallel development efforts and to acquire proven channels and seasoned support teams in the process. With this large investment in place, we have all the capital we need to fully execute on our plan." Have they gone through the bulk of that $500 million in less than 4 years? It would seem so at first glance. Anyone have any further thoughts or deeper analysis than my simple use of press releases and a conference call? Dee Jay