Zhone Technologies will acquire Sorrento Networks Corporation, a supplier of metro-optical transport and access products.
San Diego-based Sorrento Networks' GigaMux product family consists of access, metro, and regional optical networking systems. Its customer base and market focus includes cable TV operators, telecom carriers, and service providers. Zhone said the acquisition of Sorrento's DWDM and CWDM products would expand its product portfolio and customer base.
Under the terms of the agreement, Zhone will issue 0.9 of a share of Zhone common stock for each outstanding share of Sorrento common stock, and each option, warrant and other security exercisable or convertible into Sorrento common stock will be assumed by Zhone and become exercisable or convertible into Zhone common stock, with appropriate adjustments based on the merger exchange ratio.
Separately, Zhone Technologies reported Q1 revenue $21.0 million, compared with $17.1 million for the first quarter of 2003. Net loss for the first quarter of 2004 (GAAP) was $13.4 million, compared with a net loss of $13.4 million applicable to common shareholders for the first quarter of 2003.
Meanwhile, Sorrento Networks reported quarterly revenue of $6.4 million, a 4.9% decrease from revenues of $6.7 million in the prior quarter, and a 24% decrease from revenues of $8.4 million in the same period a year earlier. Operating expenses for the quarter declined to $5.9 million, a 7.2% improvement over $6.4 million in the prior quarter,. http://www.zhone.com
- In February 2004, Zhone Technologies acquired the assets of Gluon Networks, a start-up based in Petaluma, California for approximately $7.0 million. Gluon had been developing next-generation converged switching systems for service providers.
- In November 2003, Zhone Technologies completed its merger with Tellium, a publicly traded developer of core optical switching systems.
