29 Aug 2001
Embattled telco equipment maker Lucent has confirmed that it has shut down Chromatis Networks, the Israeli business it acquired only last year in a all-share deal then valued at $4.5bn.
The closure means 150 job losses and speaks volumes about the mistakes made by Lucent's previous management, which recently received multi-million pound pay-offs.
Lucent gave Chromatis billions of dollars worth of shares in an attempt to improve its position in the optical metro-networking niche against competitors such as Nortel and Cisco.
But Lucent admitted that the Chromatis product had attracted only two customers over the past year compared with 20 customers for Lucent's two other metro-networking products.
Indeed, Lucent's shares have fallen so dramatically since last year's deal that the same deal today would be worth only $570m.
Latest stories from Telecoms
Related articles
Related jobs
Poll
What is the most important IT priority for your company this year?
Hands on with the highly anticipated Android 4.0 Ice Cream Sandwich hybrid tablet
Connect with V3.co.uk
This paper focuses on a series of best practices and techniques for development teams looking to improve their software development processes
Why good data management at all levels is essential in the modern business (video, 6mins)
A leading US Prop Trading House/Market Maker is currently...
A leading financial services group has an urgent requirement...
UI Developer Wanted - CSS, HTML, JavaScript with .NET...
Java Developer - Gloucestershire - £35-40k per annum...
Keep up to date with the latest products, services and technologies from the world's leading IT companies. IThound.com brings you over 2,000 white papers, case studies and analyst reports.
Do you agree?