T-Networks Receives $30.6 Million in Series B Capital Investments; Funding Earmarked for Continued Product and Organizational Development, Sales Infrastructure
ALLENTOWN, Pa.--(BUSINESS WIRE)--April 22, 2002-- T-Networks Inc., founded in July 2000 to bring practicable innovation to optoelectronics by leveraging the qualities of indium phosphide (InP), announced today $30.6 million in new capital investments. The series B funding includes re-investments by Greylock, Intel Capital, Sequoia Capital, US Venture Partners, and Vitesse Semiconductor, in addition to new investor TL Ventures. The latest infusion of venture funding gives the Company, which has already introduced products into the optical marketplace, sufficient resources to augment its world-class systems-focused engineering team, further extend the sales infrastructure, and continue product development.
"T-Networks impresses us with the speed of their progress in key areas: assembling a first-rate team, building a top-line development and production facility, successfully applying a systems approach to optical component technology, and delivering that technology to the market," said Winston S. Fu, Ph.D., general partner at US Venture Partners. "New strategies are needed to address the economic and technical challenges faced in telecommunications, and T-Networks is demonstrating a level of innovative thinking that we are confident will succeed in helping to move this industry forward."
T-Networks said it expects to achieve revenue generation and volume product shipments by the second half of 2002. The products target key market segments, including 10Gb/s DWDM, 10Gb/s long-reach, and 40Gb/s applications.
"We've been seeing a lot of deals in the optical communications space that fall short in this fund raising environment because they are limited point solutions, or offer `me too' products. T-Networks stood out because of the highly differentiated products and capabilities they offer," said Michael D. Burns, a Managing Director of TL Ventures. "T-Networks' pioneering approach and mature management team have already produced a winning platform, impressed customers, and generated revenue. We see more of the same for the long-term."
T-Networks' solutions exploit the high-performance qualities of InP to introduce performance efficiencies and characteristics superior to those available with traditional lithium niobate-based products. The Company's patented approach integrates the functionality of multiple optical components into one InP-based platform, significantly reducing cost and power consumption in a footprint nearly one-tenth the size of both typical discrete solutions and lithium niobate-based products, while supporting 10Gb/s and 40Gb/s network applications.
"T-Networks' systems approach to the optical market is made possible by the accomplishments and talent of our outstanding team, and these new investments will allow us to focus on continued product development and further market penetration," said Aaron Fisher, T-Networks' president and CEO. "We continue to work closely with our customers and partners to apply our technology in new ways to the optical market, focusing on the needs of transmission systems developers to drive down the cost, size, and power consumption of traditional optical solutions."
About T-Networks Inc.
Based in Allentown, PA., a high growth area of optoelectronic component expertise and innovation, T-Networks was founded in July 2000 to address a critical need for a solution that resolves size, power and cost issues confronted by optical network infrastructure companies seeking to quickly sell their equipment for implementation in 10Gb/s and 40Gb/s environments.
T-Networks is a privately held, venture-funded company with backing from leading venture firms, including: Greylock Partners, Sequoia Capital, TL Ventures, and US Venture Partners. Corporate investors include communication semiconductor companies Intel Capital and Vitesse. For more information, please visit www.tnetworksinc.com.
CONTACT: Mike Spinney Sterling Hager, Inc. 617-926-6665 x 294 www.sterlinghager.com or Amanda Brown T-Networks Inc. 610-289-5040 x 1076 www.tnetworksinc.com