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
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 Speedus.com (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
Eisenberg heads KJM Healthcare Consulting Inc., which advises medical
practices on coding and reimbursement issues, medical record
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 Speedus.com, 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
08540. Ray Watrous, chief technology officer. 609-734-6596; fax,
Home page: www.zargis.com
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."
08512. Frank Fawzi. 609-655-2277; fax, 609-655-2292. Home page:
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. www.adc.com
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
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 (www.sun.com/jini). "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
The company is funded by TL Ventures, EnerTech Capital Partners,
House International, and Kinsman Capital LLC.
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.
Home page: www.tachyonsystems.com
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."
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.
Road West, Princeton 08540-5052. Boris Fridman, president.
fax, 609-734-0346. Home page: www.broadbeam.com
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.
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
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
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.
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."