TeraXion secures $10 million in second-round financing
March 24 2003--TeraXion announced today it has secured an additional $10 million in an ongoing second round of financing. The funding will help TeraXion to launch its next-generation products and sustain sales and marketing efforts worldwide.
March 24 2003--TeraXion announced today it has secured an additional $10 million in an ongoing second round of financing. SGF Tech Inc. led the round, joined by existing shareholders Business Development Bank of Canada (BDC) and Innovatech QuÃ©bec, as well as new investor, Entrepia Inc. The money raised in this round, the formal close of which will be announced at a later date, will help TeraXion to launch its next-generation products and sustain sales and marketing efforts worldwide.
"This important investment from SGF Tech in TeraXion confirms our strategy to continue supporting and strengthening the most innovative Quebec-based companies of the photonics sector, such that they be positioned to stand out once the telecommunications market returns to more normal conditions, asserts Pierre Laflamme, president and chief operating officer of SGF Tech Inc.
"We are pleased to join the TeraXion investment team, as we recognize in the company a sound business plan and an exceptionally focused management team," adds Gene Kawaratani, president and chief executive officer of Entrepia Inc. "That they have now generated revenues for several months consecutively in a very difficult environment reflects well on the value proposition of their product line and potential for profitably expanding into other areas of optical networking."
"Our investors recognize that we have been able to generate revenues, in a very difficult climate, from a broad customer base by virtue of a diverse product portfolio," contends Alain Chandonnet, chief executive officer of TeraXion. "This vote of confidence should be reassuring to our customers as we prepare to launch new tunable components and functional modules for the next generation of optical networking systems."
TeraXion is demonstrating their latest products at the OFC Conference in Atlanta, GA, this week. The new products include those acquired in the Phaethon Communications intellectual property rights transaction in December 2002.