Telecom startup Catena Networks cut 16 per cent of its staff on Thursday as it girds itself to achieve commercial success without any more venture capital dollars.
The company, based in Redwood Shores, Calif., employs the bulk of its staff at its R&D operations in Ottawa. The cuts are widespread in all areas and offices.
VP of corporate communications Steve Bauer declined to offer a specific headcount. Last December the company cut 20 per cent of its staff, a move that cost 77 of about 380 jobs in Ottawa and one of 20 positions in the U.S. Based on those figures, Thursday's cuts could impact around 50 jobs.
Catena develops components providing DSL services. DSL, or Digital Subscriber Line, brings broadband Internet to homes and small businesses over ordinary copper telephone lines.
Catena has two core DSL products. The first is for upgrading existing carrier loop voice networks to deliver broadband services. The second is a complete DSL carrier loop system that delivers both voice and broadband.
The company has already started generating revenues from these products, Bauer said, but growth has been slow.
President and CEO Jim Hjartarson said the company considered the rate of growth likely in the market over the next 18 to 24 months and decided it shouldn't expect anymore venture capital dollars to carry it through to profitability.
"What we're really doing is positioning ourselves to weather the telecom downturn, which in our case really means a much slower rate of growth than what we thought was likely even a few months ago,” Hjartarson said. "And we just need to get ourselves ship shape to weather the storm and come out the other end a healthy, profitable company without having to raise more money.”
Hjartarson shares the view widespread in the telecom industry that the turnaround will come in 2004.
Catena has hauled in an impressive catch of venture capital dollars in recent years. By last summer it had raised a total of US$117 million in several financing rounds since its founding two-and-a-half years earlier. Last January it followed up with a fourth round worth US$75 million.
The company, based in Redwood Shores, Calif., employs the bulk of its staff at its R&D operations in Ottawa. The cuts are widespread in all areas and offices.
VP of corporate communications Steve Bauer declined to offer a specific headcount. Last December the company cut 20 per cent of its staff, a move that cost 77 of about 380 jobs in Ottawa and one of 20 positions in the U.S. Based on those figures, Thursday's cuts could impact around 50 jobs.
Catena develops components providing DSL services. DSL, or Digital Subscriber Line, brings broadband Internet to homes and small businesses over ordinary copper telephone lines.
Catena has two core DSL products. The first is for upgrading existing carrier loop voice networks to deliver broadband services. The second is a complete DSL carrier loop system that delivers both voice and broadband.
The company has already started generating revenues from these products, Bauer said, but growth has been slow.
President and CEO Jim Hjartarson said the company considered the rate of growth likely in the market over the next 18 to 24 months and decided it shouldn't expect anymore venture capital dollars to carry it through to profitability.
"What we're really doing is positioning ourselves to weather the telecom downturn, which in our case really means a much slower rate of growth than what we thought was likely even a few months ago,” Hjartarson said. "And we just need to get ourselves ship shape to weather the storm and come out the other end a healthy, profitable company without having to raise more money.”
Hjartarson shares the view widespread in the telecom industry that the turnaround will come in 2004.
Catena has hauled in an impressive catch of venture capital dollars in recent years. By last summer it had raised a total of US$117 million in several financing rounds since its founding two-and-a-half years earlier. Last January it followed up with a fourth round worth US$75 million.
