Sound Diagnostics Still Surviving

Telecom Sale: Commtech to ADC

Software Expansion

From Nasdaq Meltdown Comes Software Downturn

Management Moves

Expansions: Hovione Builds

New in Town

Crosstown Moves

Leaving Town

Corrections or additions?

These articles by Barbara Fox were prepared for the

April 11, 2001 edition of U.S. 1 Newspaper. All rights reserved.

NEC Pulls Plug On Eulix Spinoff

Just two months after Michelle Kuplic, above, accepted

the job as president and CEO of Eulix Networks Inc., an NEC


spinoff, the Eulix technology was declared not quite ready for prime


From 35 to 40 Eulix employees had occupied two floors of the NEC USA

building on Independence Way, and their offices and lab benches are

empty. Kuplic is back in North Carolina and is reportedly waiting

to be assigned another NEC division. No formal announcement of the

company’s closing has been made, and Kuplic did not return a



"I love pressure," she said for a January interview for U.S.

1 Newspaper; she was featured on the cover for the Women in Business

issue on January 31. "I thrive on change. I like the


she said then. "It’s like putting together a puzzle — how

fast can I put it together?" At that time, the company reported

it had 100 people, including 45 to 50 people in Princeton, an office

in Colorado, and three overseas locations.

When Eulix was founded last fall, NEC USA had poured $15 million into

it. Kuplic was hired in December, 2000. "Speed to market is


for Eulix Networks," Kuplic was reported as saying. "Within

my first few weeks at the helm, I had five venture capital firms


analysts searching out online information on us, and stories about

Eulix activity running in Dow Jones, Bloomberg’s and the Financial

Times globally." She unveiled the DeltaX switch at the Comnet

Conference & Expo in Washington, D.C. on Tuesday, January 30.

Then Kuplic reportedly told Eulix’ board of directors that unless

the company could get substantially more investment, it should shut

down. The board chose to close the firm in mid February. As of Monday,

April 9, neither Eulix nor NEC USA had announced the company’s demise,

nor had any notice appeared in the media.

The company’s chief product, the DeltaX switch, was supposed to


the routing of information between cable wires, telephone lines, and

cellular signals. "In the lab the switch was singing just


says an insider. "But telecommunications protocols are such a

hodgepodge, it would have taken nine months or a year for the switch

to be ready."

"The product required considerably more investment to ready it

for the marketplace," says Lourdes Cogswell, spokesperson for

NEC USA. "Michelle Kuplic assessed the business outlook and the

products they were working on and made two recommendations, either

to seek substantial capital commitment or to close the operations

down. As the chief shareholder, NEC looked at the business plan and

the timetable required and made its decision based on that."

For her work with Eulix, Kuplic was commuting to Princeton from Chapel

Hill, North Carolina, where her husband has an architectural


business, and they have children ages 11 and 16. A 20-year veteran

of the information technology industry, Kuplic majored in computer

at the University of Wisconsin (Class of 1982), worked for MCI in

its youth, and then went to Sprint, Ericsson, and most recently was

senior vice-president of global sales and services for Gai-Tronics.

Asked how she made the decision to leave Gai-Tronics for Eulix, she

told the U.S. 1 reporter that she called industry contacts, asking

them whether the Eulix product could work in the marketplace.


I got three heads to nod, I knew I was onto something."

At that interview, Kuplic acknowledged that even a spin-off from a

company with deep pockets is not a dead certainty. She used the highly

publicized problems at communications giants AT&T and Lucent


to make the point that startups aren’t the only companies that can

trip up. The key thing, in Kuplic’s view, is whether a company has

a product that solves a problem and fulfills customers’ needs. Eulix

had but 10 potential customers.

Kaoru Yano, president of NEC USA Inc., had said that Eulix would be

part of NEC’s strategy to launch new entrepreneurial business ventures

capable of bringing advanced new technologies and solutions to market


This is not a "work on the technology and try again later"

opportunity. "Resurrecting Eulix is not under consideration,"

says Cogswell. "Michelle was brought in to run the business and

part of that involved assessing the business outlook and developing

a business plan. She determined she needed additional resources to

get the product to market. She did a great job in leading the


— Barbara Fox

Top Of Page
Sound Diagnostics Still Surviving

Though the Eulix spinoff from its Japanese parent has

been canceled, a start-up that sprang from a German company is still

alive. For Sound Diagnostics, Raymond Watrous has his office in the

Siemens Corporate Research building on College Road East (U.S. 1,

January 17). Prompted by trademark issues, Sound Diagnostics has


its name to Zargis Medical Corp.

Both Siemens Corporate Research Inc. (SCR), a subsidiary of Siemens

Corporation, and (SPDE) have a stake in the new company.

Zargis hopes to develop advanced diagnostic products and services

for primary care physicians and other healthcare providers to detect

heart abnormalities. If it can identify valvular heart disease that

might otherwise go undetected, yet improve the recognition of innocent

heart murmurs, it could reduce the number of unnecessary referrals

for more expensive diagnostic evaluations.

Speedia Wireless, a wholly owned subsidiary of SPEEDUS, has signed

an exclusive contract with Zargis to design and develop the wireless

applications, as well as provide transaction processing to support

the commercial rollout of Zargis cardiac diagnostic products.

Four MDs have been appointed to the medical experts board: Alvin J.

Chin, Warren David Cooper, Lee D. Eisenberg, and Nathaniel Reichek.

Reichek has been involved from an early stage in the development of

the technology; he teaches at Hahnemann and the Medical College of

Pennsylvania and is director of cardiology at Allegheny General


in Pittsburgh.

Eisenberg heads KJM Healthcare Consulting Inc., which advises medical

practices on coding and reimbursement issues, medical record


and compliance.

Cooper has a consulting practice, Coalescence Inc., that focuses on

Internet strategies for pharmaceutical and related businesses. Chin

brings a perspective on neonatal and pediatric cardiology; he founded

and has directed the Non-Invasive Laboratories at Children’s Hospital

of Philadelphia and now teaches at Penn.

On the management board are two officers of Siemens Corporate


Silvano Dall’Asta, chief financial officer, and Shahram Hejazi,


of strategic business development. Other board members are William

F. Leimkuhler of the Paice Corporation, a privately held developer

of advanced vehicle power trains, and Shant S. Hovnanian, now


CEO, and president of, previously managing director of

V.S. Hovnanian Group, comprised of land development, home building,

mortgage banking and private utility operating companies.

Watrous is the only full-time employee, but he is looking for the

second, a senior level processing engineer for analysis of heart


Zargis Medical Corp., 755 College Road East,


08540. Ray Watrous, chief technology officer. 609-734-6596; fax,


Home page:

Top Of Page
Telecom Sale: Commtech to ADC

Another Central New JErsey telecommunications company

has been acquired by ADC Telecommunications. Frank Fawzi, founder

of the Route 130-based Commtech, has completed the sale of his firm

and is now chief technology officer of ADC’s integrated systems group.

Fawzi’s $187 million deal was a stock-for-stock transaction, with

13.25 million shares of common stock issued; some employees got stock

options. Updata represented Commtech in the February acquisition.

Fawzi founded Commtech Corporation in 1990 to manufacture telephony

switching products and building control systems. Fawzi, 34, is


from Turkey; his father owned a business in Istanbul that distributed

pharmaceuticals throughout the Mideast. He got both his BS in


and a masters in MIS from Stevens Institute of Technology (1984 and

1987, respectively), and worked with AT&T Bell Labs, Sun Microsystems,

and the Associated Press.

At the time of the sale his company had more than 280 employees


those at the 25,000-foot Cranbury headquarters. Others were in Brick,

New Jersey, Columbus, Ohio; Toronto, Canada; and London. Its more

than 60 customers and partners include BellSouth, Qwest, Adelphia,

Comcast, SBC, Verizon, Network Plus and CableVision Lightpath, and

it had an early investment from Morgan Stanley Dean Witter Venture


ADC is a publicly traded supplier of fiber optics, network equipment,

software, and integration services for broadband multiservice


Its stock (ADCT) is tracked in the Standard and Poor’s 500 Index and

the Nasdaq-100 Index. It has annual sales of $3.2 billion and


21,000 employees worldwide.

In 1998 ADC Telecommunications had bought Princeton Optronics, the

fiber optics component firm on Phillips Boulevard that was founded

in 1993 by Barry Zhang (U.S. 1, August 23, 2000). As part of the fiber

division within ADC’s Broadband Connectivity Group (BCG), it helps

ADC offer a single source for high-quality optical components.

ADC began in 1935 in Minnetonka, Minnesota, with the invention of

an audiometer, to test hearing. It flourished in the 1980s when the

regional Bell companies were empowered to shop for their equipment

in the general marketplace. It pioneered in the shift from analog

to digital and became the industry leader in digital signal



Just before the company sale was announced, Fawzi won an innovation

award for his FastFlow software, which integrates service order entry

and management, provisioning (including inventory management), and

activation. This software has flow-through provisioning solutions

for DSL and cable service providers. Billed as "multi-tier


architecture that offers flexibility for end-to-end order management

and service activation," it will be integrated into ADC’s


suite of end-to-end solutions.

ADC’s Singularit.e product is intended to allow Communication Service

Providers (CSPs) "to focus on business imperatives and grow the

bottom line rather than expending resources on costly and lengthy

integration and infrastructure projects."

ADC Telecommunications, 2555 Route 130 South,


08512. Frank Fawzi. 609-655-2277; fax, 609-655-2292. Home page:

ADC Telecommunications Inc. (ADCT), 250 Phillips

Boulevard, Suite 255, Ewing. Barry Zhang, director, optical components

development. 609-771-4370; fax, 609-771-9790. Joe Latore,


manager. 609-671-2714; fax, 609-771-4371.

Top Of Page
Software Expansion

Valaran, 214 Carnegie Center, Suite 106, Princeton

08540. Andrew Maunder, CEO. 609-716-7200; fax, 609-716-8463. Home


Just six months after moving into the Carnegie Center, Valaran


hosted a three-day event, co-sponsored by Sun Microsystems last week.

The conference was on the flexibility and productivity of Sun’s Jini

network technology.

Aiming to integrate complex business systems, Valaran works with


software infrastructure and business solutions for global


and Internet markets. Valaran is using Jini network technology in

the telecommunications industry for back office integration and


process control applications. Valaran’s chief product is Vista, an

application integration software for communication services providers

and vendors of operations and business support systems.

Sun’s Jini technology provides open end-to-end solutions for creating

dynamically networked products, services, and applications that scale

from devices to enterprise ( "Jini network


has made incredible headway over the past year in different types

of business applications,” says Aleta Ricciardi, executive vice


of product development for Valaran.

Andrew Maunder is the CEO and Michael Ogg the chief technology


Recent hires are George Timmes as senior vice president of sales and

marketing, Eric Fleischer as vice president of alliances and business

development, and Paul Rabin as director of technical marketing and

sales support.

The company is funded by TL Ventures, EnerTech Capital Partners,


House International, and Kinsman Capital LLC.

Top Of Page
From Nasdaq Meltdown Comes Software Downturn

Like many software firms associated with Wall Street,

Tachyon Systems has had to react to the bear market. In January


Systems moved out of its space on Hulfish Street and is refocusing

its efforts. Keith Danko, the president and CEO, says the company

is still seeking opportunities and continuing to work on a pilot


for a major Wall Street firm. Tachyon’s co-founder, Sasha Migdal,

invented software for real-time Nasdaq analysis (U.S. 1, April 19,

2000.) "I personally remain a big believer in our technology,"

says Danko. He co-founded the firm with Migdal, the Russian-born


responsible for several other companies.

Tachyon is built around FalconEye software, billed as an "an


effort to deliver real time data and analytics over the Internet


Java applets," giving traders a useful method to analyze the kind

of information that the Internet makes possible, and communicating

the resulting content in real time in a convenient way. A live map

uses Java to plot and sort the entire Nasdaq market according to one

of nine technical indicators, and alerts can monitor a particular

technical indicator and sound a warning.

"Certainly our company has been affected by recent activity in

the stock market, but longer term I am convinced that the value of

our technology will win," Danko says. "We remain the only

company with technology that can capture, clean, and analyze every

tick of Nasdaq’s data in real time." In other words, when the

bulls once again replace the bears on Wall Street, watch for a falcon

in the sky.

Tachyon Systems LLC, Keith Danko. 609-921-2216.

Home page:

Top Of Page
Management Moves

Horizon Mercy, 275 Phillips Boulevard, Trenton

08618-1426. Velvet G. Miller, president. 609-393-4300; fax,


Velvet G. Miller is the new president of the Horizon

Mercy managed care program, a partnership of Horizon Healthcare of

NJ, a subsidiary of Horizon Blue Cross Blue Shield, and Mercy Health

Plan. The agency has 2,500 members, a budget of $500 million, and

245 employees on Phillips Boulevard and another 25 at offices in


and Camden. It focuses on the publicly insured, those with income

from the state or the federal government.

Bertram L. Scott, former president of the HMO, is now president and

CEO of TIAA-CREF’s life insurance subsidiary.

"Of the six HMOs that service the publicly insured, we have the

largest number of members," Miller says, pointing to the large

number of KidCare and FamilyCare clients who have chosen the Horizon

Mercy program over the other five programs.

With a bachelor’s degree in nursing from Wagner College, a master’s

from Temple, an MBA from Harvard, and a PhD from Boston University,

she has been state director of medical assistance and health services

for Medicaid and state deputy commissioner. With Cal Davis she had

founded a eldercare advisory service, My Parent’s Concierge, and had

also headed a development project for the Robert Wood Johnson


"I’ve been committed to this population for a long time,"

says Miller. "This is all about access to healthcare. This is

another way, from my end, of making sure they get good care."

Top Of Page
Expansions: Hovione Builds

Hovione LLC, 475 Wall Street, Princeton 08540.

Dave Hoffman, vice president of U.S. Operations. 609-497-0506; fax,


The Portugese chemical maker, now in offices at Research Park, is

building on eight acres on Lake Drive in East Windsor with a planned

move-in date of spring, 2002. The 30,000 square-foot facility will

do development and testing of active ingredients used in


as well as sales and marketing. At its opening, there will be 12


but that number is expected to climb to 45. CUH2A is doing the design

work and Turner Construction the building.

The company had international sales of $60 million last year, and

the United States represents 55 percent of its chemical sales. The

actual manufacturing of the chemical ingredients will take place in

Lourdes, Portugal, and Macau, south China. Hovione is now supplying

ingredients for Phase III clinical trials but wants to get involved

in Phase I and Phase II. Paula Weissberger is marketing director.

The Portugese company is investing $15 million in what is being called

a technology transfer center.

Broadbeam Corp. (former Nettech Systems), 100


Road West, Princeton 08540-5052. Boris Fridman, president.


fax, 609-734-0346. Home page:

Broadbeam has expanded from 45 to 75 people and moved from Alexander

Road to the Patrinely building at 100 College Road West. It does


software development, particularly wireless communications, with


in Chicago, Boston, California, and Texas. Walter Schoenberg of


Wakefield in East Rutherford represented the tenant.

Top Of Page
New in Town

Adams Business Consultants Inc., 5 Independence

Way, Princeton Corporate Center, Suite 300, Princeton 08540. Mark

Timothy Adams, president/CEO. 609-520-2147; fax, 609-452-8464. Home


Mark Timothy Adams has opened a consulting business to do program

and project management in telecommunications, insurance, banking,

brokerage, and pharmaceutical areas. A native of Long Island, he


in business at Kensington University, in Glendale, California, Class

of 1985.

Genmab Inc., 707 State Road, Suite 208, Princeton

08540. Lisa Drakeman, CEO. 609-430-2481; fax, 609-430-2482. Home


Lisa Drakeman, CEO of Genmab Inc., has opened an office of the


biotechnology firm next-door to Medarex, where her husband, Donald,

is the CEO. Genmab was founded in Copenhagen and has a laboratory

in the Netherlands.

Drakeman went to Mount Holyoke, Class of 1975, and met her husband

when he was at Dartmouth. Both earned their PhDs in religious history

at Princeton University.

Using Medarex’ HuMAb-Mouse technology, Genmab can rapidly create high

affinity fully human antibodies instead of mouse antibodies. Genmab

wants to use these antibodies to develop some of the new disease


that are being discovered through genomics and other scientific


The transgenic mouse technology bypasses complicated genetic


and some of the time consuming tests on humans. These fully human

antibodies contain no mouse or other animal proteins that can trigger

allergic responses or other complications. Genmab has four products

in development to treat cancer, rheumatoid arthritis and other



Top Of Page
Crosstown Moves

First Horizon Home Loans (FTN), 2 Tree Farm Road,

Pennington Point West, Suite A-210, Pennington 08534. Gary Shambaugh,

branch manager. 609-243-9161; fax, 609-243-0127.

First Horizon Home Loans Corp. has moved from 12 Roszel Road to


It was formerly known as Maryland National Mortgage Corp.

Top Of Page
Leaving Town

Monitor Capital Advisors, 51 Madison Avenue, Room

201, New York 10010. 212-576-6400.

Six years after moving from Madison Avenue to the Carnegie Center,

this organization has changed its name from Monitor Capital Advisors

to New York Life Investment Management Quantitative Strategies and

returned to Manhattan. At one time the company had 12 employees at

504 Carnegie, on a sublease from Educational Testing Service.

When known by the Monitor name, it was an independent money management

firm with a quantitative management style and was wholly owned by

New York Life. It managed a portfolio family of six mutual funds,

plus pension funds sold by New York Life Insurance sales agents and

by broker dealers.

Jim Mehling, an ex-Merrill Lynch employee, brought Monitor to


partly to find leading edge programmers from among those who work

for Dow Jones, Merrill Lynch, and Bloomberg.

and other financial institutions. "One of the reasons we came

to Princeton is that we hope to find `our type’ of people down


said Mehling then. "We know there is a big pool down here.


is a bit of a sleeper for investment management."