Xytrans Raises $8.0 Million In Series B Financing
Orlando, FL - Xytrans, Inc., a leading manufacturer of high- frequency millimeter wave (MMW) transceivers and power boosters for broadband communications, today announced that it has secured $8.0 million in Series B financing. Led by SpaceVest, a leading venture capital fund investing in companies that capitalize advanced technologies, this round also includes Grace Venture Partners and Series A investors, including, among others, Series A lead Alliance Technology Ventures (ATV), Crossbow Ventures Inc., Sawtek, a subsidiary of TriQuint Semiconductor, and Stonehenge Capital Corp. The funding will be used to ramp up new product development and expand sales.
Despite the challenging fund raising environment, Xytrans' Series B financing round was over- subscribed. This was due, in part, to recent customer progress, including orders and letters of intent from and product deliveries to leading communications companies. "Recent product launches coupled with keen interest from major broadband and satellite communications customers, a solid business plan, and a seasoned management team are all strong indicators that Xytrans is well positioned for substantial growth," said Ransom Parker, Managing Director of SpaceVest. "Xytrans is a good example of an emerging high tech company with breakthrough technology that can help facilitate the growth of high-performance wireless broadband communications," added Ned Grace, Managing Director of Grace Venture Partners.
Xytrans received $4.5 million in its first round of funding in March 2001, and subsequently secured a $1 million line of credit from Silicon Valley Bank earlier this year. This allowed the company to develop its first line of products and establish its high-volume production line. The company's main focus is developing ultra-low-cost transceivers and outdoor units for both terrestrial and VSAT markets. "We believe our product line will play a key role in helping to make the next generation of communications capabilities a reality," said Rob Strandberg, Xytrans' CEO. "Our compact designs will allow our customers to offer increased performance up to 1000 times greater than existing subsystems at a cost three to four times lower than what's available today. These are pretty significant numbers."
Xytrans most recently launched its satellite transceiver and power booster product lines, which will provide two-way satellite communications hubs and terminals with the high performance needed to offer reliable, high-speed data connectivity to areas where cable and DSL are not available. Because it also offers a cost-effective way to provide two-way Internet and direct home video/audio on demand, this technology has further potential to replace existing one-way direct broadcast TV service, and to provide consumers with high-speed, two-way internet access that is more than twice the speed of DSL or cable modems.
The existing Xytrans terrestrial transceiver product line will enable high data rate, last-mile connectivity, allowing radio manufacturers to produce up to 1000 times the data capacity of DSL or cable modems, and is a key element in accelerating the build-out of 2.5 and 3G cellular networks that will provide consumers with new video and data capabilities for their cell phones and PDAs. Xytrans is scheduled to unveil its newest terrestrial product, a very high-performance yet highly compact and low-cost terrestrial outdoor unit, in June at Supercomm 2002. "We're very excited about this new product release," said Strandberg. "Early indications are that this will be one of our most successful launches to date."
Xytrans, Inc., headquartered in Orlando, FL, is a MMW transmitter and receiver design and manufacturing company. Xytrans is addressing the wireless broadband network market's demand for high-performance, low-cost, high-quality transmitters and receivers in the high frequency range, for use in satellite data communications and terrestrial point-to-point, point-to-multipoint, LMDS and mesh networks. Founded in 2000 by the Central Florida Innovation Corporation (CFIC), which creates high-growth companies, and a team of former Lockheed Martin employees, the company has obtained a license from Lockheed Martin for its MMW high-power transmitter and receiver technology, and is well positioned to enable growth in the wireless broadband MMW high-end module market. For more information, please visit www.xytrans.com
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