OMM, Inc., a supplier of micro-electro-mechanical systems (MEMS) based optical switch array modules, announced today that it will cease operations as of Friday March 7, 2003. The company plans to release all of its 85 employees as of that date and assign the assets to the benefit of the company's creditors.

"OMM has been highly successful in the design and manufacture of the world's first commercial MEMS-based optical matrix switches," said Phil Chapman, president and chief executive officer of OMM. "The company shipped products to more than 60 telecommunications equipment manufacturers and achieved numerous customer design wins. However, with the severe downturn in the worldwide telecommunications industry, the market timing for volume deployment of our products has been significantly impacted."

The company has been seeking additional private funding to continue its operations, but was unable to raise the total amount deemed necessary to wait out the current downturn in the global telecommunications market

OMM, originally known as Optical Micro-Machines, was started in San Diego, California in 1997 and was funded by a combination of venture capital and strategic customer investments. The company's venture investors included Sevin Rosen Funds, Atlas Venture, Bessemer Venture Partners, Rho Capital Partners, and Weston Presidio. Strategic investors included Nortel Networks, Siemens, Alcatel, Sycamore Networks, Solectron, Fairchild Semiconductor, and Corvis Corporation.