Companies trying to get financing for their operations, find they have to cut costs in order to interest potential investors.
Plano, Texas and Tel Aviv based Lasercomm has in the last six months cut its workforce by half. In July of 2001 the company, which had 200 workers, fired about 30 of them. As the news of its funding round was released yesterday, it was revealed the company now employs only 110 people.
Mickey Steiner, CEO of Lasercomm Israel, today said the company did not go on a layoff rampage: "In July we let go a little more than 30 workers. Since then we laid off a few at a time." Steiner added the company also "made a small insignificant cut in all of its workers salaries."
Yesterday the company announced the completion of a fourth $21 million financing round, led by Morgan Stanley Venture Partners and Index Ventures. Other investors were Giza GE Venture Fund, the Cedar Fund, Glide, SSM Ventures and Link Technologies.
The round leaves Lasercomm with $77 million capital.
The company said the new funds will help it support its clientele base, boost its productivity, and develop new Hi-Mode products for dispersion management based on the company's core technology.
Lasercomm develops and manufactures innovative components for optic communication systems. Its solutions enable faster data transfer over longer distances.