WydeBand, the subsidiary of Comverse Technology (Nasdaq:CMVT) and RADWare (Nasdaq:RDWR) put on hold a $7 million to $10 million private placement, originally due to end in Q1 2002, TheMarker has learned.
At the end of September 2001 WydeBand ran out of the $6 million it got from its parent companies when it was founded. The two companies continue to finance its activities with bridge loans until its next funding round. In the last several months WydeBand was forced to let go 20% of its fifty workers, and to cut 15% of the remaining workers' pay in order to slow down its burn rate.
Estimates are Comverse and RADWAre expect WydeBand to receive significant orders for a system it developed, which provides Internet traffic management solutions and provides solutions at the supplier level to broadband access networks. The orders could mean the next funding round will be held according to a higher valuation than the original round.
The company today announced the appointment of Shaul Gal-Oz as CEO, to replace the CEO and founder of the company, Dove Levanon. Estimates are Levanon is retiring due to disagreements with the investors. Gal-Oz, the founder, president and CEO of Aisys, has been running the company from its California offices for the last five years.
WydeBand specializes in the development and marketing of platforms for services and applications on wideband infrastructure, ADSL and cable. WydeBand's products allow communication companies to supply their customers with efficient and trustworthy services such as video by demand, video conferencing ad interactive games.