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By
Ramin
Farjad Rad, Ph.D.
SiliconIran plans to review and publicize annually the most
successful high-tech companies in the world who have made it to
the top of their class as a result of the extraordinary leadership
by the visionary Iranian-born entrepreneurs. This issue of SiliconIran
covers the success story of seven of these technology leaders whose
exceptional performance in their field have resulted in five of
the major high-tech acquisitions in the United States in the recent
years. The size of these acquisitions ranges from a couple of hundred
million dollars to tens of billion dollars. Some of these companies
have broken industry records by developing technologies that were
believed to be impossible at the time of their inception. The following
have been known as the fastest growing companies in terms of value
and development.
Mory
Ejabat
Mory
was born in March of 1950 in the city of Tehran, Iran. At the age
of 20, he immigrated to US to continue his studies in systems engineering
at California State University at Northridge, where he received
his BS and MS in the field of Industrial Engineering (IE). He also
received a MBA from Pepperdine University at Malibu. In one of his
earlier jobs, Ejabat as the vice president for wide area communications
products at Micom Systems, Inc. was in charge of the total P&L responsibility
for the WAN product line. Ejabat joined Ascend in 1990 as vice president
of operations, assuming increasingly strategic roles within the
company during his career there. Ascend
was the leader in wide area network (WAN) solutions for providers
and users of the Public Network. He then served as president, CEO,
and director of Ascend before its IPO in 1995. Under Ejabat's leadership,
Ascend's annual sales grew from $40 million to nearly $2.3 billion
in just over five years, with an increase in personnel from less
than 100 to more than 3,000 full-time employees by the end of 1998.
Ascend's business success was achieved both through organic growth
and strategic acquisitions, the most notable being the $3.7 billion
purchase of Cascade Communications in 1997 and of Stratus Computer
Corporation in 1998. Mory sold Ascend Communications Inc. to Lucent
Technologies for $24 billion in 1999. Mory Ejabat is currently the
chairman and CEO of Zhone Technologies, Inc. Zhone is a newly formed
company pioneering the development of next-generation communications
equipment to enable carriers and service providers to cost effectively
offer high-bandwidth services independently of the existing local
loop communications infrastructure.
Ascend
Communications was a top maker of digital switches and networking
products for WANs (Wide area networks). Its product line included
switches, routers, and remote-access tools. Ascend developed architecture
for Internet-based communications, and ATM (asynchronous transfer
mode) and frame relay networks, which enable high-speed networking
connections. A leader in data networking technology, the company
was acquired to help telecom equipment giant Lucent Technologies
compete with networking equipment king Cisco Systems in the data
and voice transmission market. Ascend is now part of Lucent's InterNetworking
Systems unit. Formerly based in Alameda, California, Ascend's last
reported sales were $1.48 billion in fiscal 1998. Ascend was a leader
in the small but growing market for frame relay equipment and remote-access
concentrators (network on-ramps that combine many modems). Its rapid
growth came from tailoring products to Internet service providers
(ISPs), including UUNET, and telecom companies, including AT&T and
British Telecommunications. Ascend was founded in 1989 by Robert
Ryan and three former employees of Hayes Microcomputer to build
connecting devices for ISDN phone lines. It launched its first line
of multimedia access products in 1991, and debuted a WAN access
switch suite one year later. Ascend went public in 1994. Ascend
extended its product lines through acquisitions. It purchased NetStar
(high-speed computer switches) and Morning Star Technologies (Internet
security) in 1996, and high-speed switching specialist Whitetree
and ISP software firm InterCon Systems the following year. Ascend
also bought Cascade Communications, a top maker of WAN switches,
in a $3.7 billion deal that gave Ascend a presence in the thriving
transmission gear market. But troubles in assimilating Cascade,
price wars in the access concentrator arena, and a roller-coaster
stock ride that had analysts squabbling about the company's prospects,
led to losses in 1997. Losses rose when Ascend opted to match 3Com's
modem software giveaway by upgrading 770,000 modems with new hardware
and software. In 1998 Ascend bought Stratus Computer in an $822
million deal, forming a new division to focus on telecommunications.
In early 1999 Lucent set in motion its plans to buy the company,
sparking lawsuits by Ascend shareholders seeking to block the purchase.
The acquisition, valued at $24 billion, was completed that June.
Farid
Dibachi & Farzad Dibachi
The
Dibachi brothers have been a good example of successful serial entrepreneurs
since early 90's in the bay area, where they implemented their novel
ideas in different ventures they created and led them to success.
After completing his M.S. degrees in Electrical Engineering from
Cornell University and in Mechanical Engineering from Stanford University,
where he also earned his undergraduate degree, Farid started his
career at Hewlett-Packard where he spent seven years in various
engineering and management positions. He started his first venture,
Wavetron Microsystems, in 1990 and served as the CEO and President
until 1995, when SBS Technology acquired the company. Farzad, the
younger brother, received a B.S. in mechanical engineering and a
B.A. in computer science from San Jose State University. Between
the years of 1993 to 1995 he was at Oracle Corporation, a database
company, where he was originally the vice president of marketing
for company's tools division and senior director of product development
in the desktop products division. From June 1994 to November 1995,
he served as senior vice president of new media division for Oracle.
The two brothers joined together in October of 1995 to found Diba,
the company that pioneered the concept of the Information Appliance.
At Diba, Farid served as chairman and chief technology officer,
and Farzad served as the president and chief executive officer during
the period of two years after which the company was acquired by
Sun Microsystems in August 1997. After completing the handover of
his responsibilities in Diba to Sun Microsystems, Farid founded
Arzoon in September 1999, where he is currently the chairman and
chief executive officer. Arzoon's mission is to harness the speed
and simplicity of the Internet to synchronize the flow of information
and freight to empower the world's transportation professionals.
In his role, Farid shapes the vision and overall strategic and business
direction of Arzoon. Within eight months, he was able to attract
about $34 million in three rounds of funding, hire 85 world-class
experts in transportation and technology, and introduce Arzoon's
Internet platform to select customers. Farzad is currently serving
as the chief executive officer and chairman of the board of directors
of Niku since he co-founded Niku in January 1998. Farid's innovative,
first-to-market ventures have consistently attracted the attention
of media worldwide. Forbes magazine called him a 'whiz kid.Ó Business
Week described Diba's information appliances as 'startling in their
simplicityÓ and USA Today, under the banner headline, 'Diba Goal:
Bring Masses On-Line,Ó featured Diba's 'ingenious productsÓ. On
the cover of Red Herring, a photo featured the two brothers as 'The
Toast of Silicon Valley.Ó
Diba
Inc. was founded in 1995 by Farid Dibachi as the company Chairman
and CTO, and Farzad Dibachi as president and CEO. Since its inception,
the company started as a leading technology provider for the Information
Appliance marketplace. Dedicated to making information more accessible
to more people, Diba created an open, end-to-end architecture for
the development and delivery of Information Appliances and services,
and licensed its technologies to consumer electronics companies,
appliance manufacturers and service providers. Using Diba's technologies,
these companies have been able to quickly and affordably create
a wide range of Information Appliances for homes, schools and offices.
By 1997, Diba had expanded to 79 employees, achieved a considerable
recognition for its vision, and proved its technology as a practical
means for closing the information gap between the technically-elite
and the rest of society. In this year, Diba also received tempting
acquisition offers from a number of big companies in the Silicon
Valley. Diba's founders finally decided to merge with Sun Microsystem,
a recognized industry leader and innovator, as it had the resources
and complementary technologies needed to accelerate the process
of getting networked Information Appliances into consumers' hands.
At the same time, Diba took a leading Internet appliance infrastructure
delivery capability to Sun. The size of the deal was over $200 million
dollars. Ever since, Sun and Diba together have targeted consumer
electronics manufacturers in developing end-to-end solutions aimed
at accelerating the delivery of JavaTM-enabled information appliances
into the hands and homes of consumers worldwide. In addition, the
two companies worked with major consumer electronics companies and
manufacturers to provide technologies for building consumer products
such as Internet-enabled TVs, Internet-enabled set top and satellite
boxes, and smart phones. "Using Diba's technology, Sun has been
offering all of the ingredients necessary to create Information
Appliance solutions into tightly integrated packages - resulting
in a significant time-to-market advantage for OEMs," said Chet Silvestri,
president of Sun Microelectronics. "This modular, open, standards-based
platforms has benefitted both OEMs and customers because they have
the power to choose the solutions that best fit their needs."
Anoosheh
Ansari
Anousheh
Ansari once dreamed of being an astronaut while growing up in her
native Tehran, Iran. Today the 34-year-old Anoosheh is the Vice
President and General Manager of the IntelligentIP division of Sonus
Networks, formed in January 2001 through Sonus' acquisition of 'Telecom
Technologies Inc.Ó, the company that Anoosheh founded and turned
into a force in the telecommunication industry. Immediately prior
to founding Telecom Technologies, Anoosheh provided consulting services
to the major telecommunications service providers and vendors in
the areas of frame relay and ATM switch testing and evaluation.
Her early career employment included positions with MCI Telecommunications
Corporation and Communication Satellite Corporation (COMSAT) in
various engineering capacities working on architectural design for
SS7 and ISDN networks. Anoosheh was the recipient of Working Woman
Magazine's National and Regional Entrepreneurial Excellence award
for General Excellence and Ernst and Young's Entrepreneur of the
Year¨ Award, Southwest Region, for the Technology and Communications
category. She has authored numerous technical papers and holds two
patents for her work on automated operator services and wireless
service node. She was a U.S. delegate at ITU SG VII, SG XI and SG
XVII, and a representative at American National Standard Institute
technical subcommittees. She holds a master of science degree in
electrical engineering from George Washington University and a bachelor's
of science degree in electrical engineering and computer science
from George Mason University. She is also a member of Eta Kappa
Nu, IEEE and NSPE.
Telecom
Technologies was founded in 1994 by Anousheh and Hamid Ansari
with the vision to build a flexible and creative environment for
the development of software expertise and solutions for the telecommunications
industry. After extensive careers with leading telecommunications
service providers, including MCI and COMSAT, the Ansaris built an
integrated software products firm that would enable the world's
telecommunications companies to offer competitive services and to
meet the ever-increasing growth of the industry. Telecom Technologies
has been offering professional services since its inception and
created their flagship product FASTest¨ in 1996. In January 1999,
Telecom Technologies sold its FASTest¨ product line to Hewlett Packard's
(HP) Measurement Organization, now Agilent Technologies. In May
1998, Telecom Technologies acquired Green River Systems ("GRS"),
a provider of Local Number Portability (LNP) and Telecommunications
Management Network (TMN) products and services. The acquisition
added state-of-the-art LNP solutions and network management expertise
to the Company's existing portfolio of products and services. In
June 1999, Telecom Technologies announced its INtelligentIP softswitch
and its INtelligentACD operator services application. Telecom Technologies
has since grown to be one of the leading soft-switch vendors in
the marketplace. This was accomplished in part by successful partner
program and inter-operable lab. The program began in November 1999
and as of December 2000 has grown to over 63 participating vendors.
In September 1999, Telecom Technologies acquired Sequel Systems,
Inc., a provider of data migration and system implementation services
to the telecommunications industry specializing in open computing
technology solutions and methodology to meet Operational Support
Systems (OSS) business requirements. In January 2001, Telecom Technologies
was acquired at over $500 million dollars by Sonus Networks, a leading
provider of voice infrastructure solutions. Telecom Technologies'
220 employees now form Sonus' new INtelligentIP division, and will
remain in Richardson, Texas.
Armond
Harapetian
Armond was born in Tehran, Iran, in 1965, where he completed his
studies through the last year of high school. He left Iran for the
United States in February of 1983 when still in 12th grade. Arriving
in the US late in the school year to complete his credentials for
high-school diploma, Armond decided to directly skip to college
instead of spending another year to get a diploma; so as he himself
puts it he is 'technically a high-school drop-out!Ó. He continued
his studies at the University of California in Los Angeles (UCLA)
in electrical engineering and received his B.Sc., M.Sc., and Ph.D.
degrees. He started his career as a design engineer in Sierra Semiconductor
(now PMC-Sierra) before joining the Semiconductor System Division
in Rockwell Corporation. While at Rockwell, he was responsible for
carrying out several mixed-signal CMOS chip designs for GSM and
other digital cellular telephone standards. Prior to founding his
company, Armond was leading the engineering design team at Oasis
Design, where he designed the architecture of an HDSL analog front-end
chip. Armond started NewPort Communications in 1996 together with
one of his colleagues in Rockwell. In NewPort, he is responsible
for overseeing the design and development of custom mixed-signal
integrated circuits, as well as planning the company's strategic
direction. Armond says one of the main motives for him to start
his venture was the joy he felt in the challenge of a startup experience
that he could not find else where. He also believes that one cannot
be too rational once he starts a little company and claims that
he is going to take on multi-billion dollar competitors; however,
he has to be careful to choose the right product for right market
while considering his strength points.
NewPort
Communications was founded in 1996 by Dr. Armond Harapetian
and Lorenzo Longo in Irvine, California. The company started as
a premier supplier of mixed-signal integrated circuits (ICs) for
the high-speed communications infrastructure market, with a business
objective of developing highly innovative ICs for the synchronous
optical network (SONET) based fiber in infrastructure in the United
States and synchronous digital hierarchy (SDH) based networks in
Europe. The system economics of NewPort Communicationsâ solutions
make it ideal for dense wave division multiplexing (DWDM) applications
that can significantly increase the bandwidth of the existing installed
base of fiber worldwide. NewPort has achieved its competitive advantage
in the field of communications ICs by its unique technology, called
current-controlled CMOS (C3MOS), which enables them to develop low
cost, highly integrated solutions that operates up to 10 gigabit
per second (Gbps) and with very low power dissipation. NewPort decided
to use its competitive high-speed technology in the communication
space based on the extremely positive outlooks by several analysts,
who had forecasted a bandwidth demand by the service providers will
quadruple by year 2002. To support this bandwidth demand, telecommunications
companies will be forced to upgrade their systems, and NewPort high-speed
ICs are the best fit for this next generation networks. In July
1999, NewPort announced the world's first single-chip 2.5-Gbps (OC-48)
CMOS SONET/SDH transceiver, and followed that success by announcing
their breakthrough product for the world's first 10-Gbps (OC196)
transceiver in May of 2000. Prior to this, the latest 10-Gbps transceivers
parts were implemented in expensive and power-hungry technologies
such as GaAs and SiGe, while such an IC was believed to be impossible
in present CMOS technologies by industry experts. The 10-Gbps CMOS
transceiver made an industry record that has not been broken to
date. Following these great successes, NewPort got a unique reputation
that attracted many companies. The company executives finally decided
to accept the merger offer from BroadCom Corporation in August of
year 2000 at a valuation of more than $1250 Million. NewPort
is currently the center for high-speed communications IC design
in BroadCom Corporation.
Maryam
Rofougaran & Reza Rofougaran
Maryam and Reza Rofougaran, two talented siblings from the city
of Isfahan, Iran, were born in years 1968 and 1964 respectively,
where they continued their education through middle and high school,
and received several awards for their excellence in different fields.
They then immigrated to the United States to pursue their dream
of becoming a successful scientist and a difference maker in the
world of physics and engineering. Pursuing their dreams, Maryam
and Reza both continued their BS, and MS at UCLA and early on started
to work as a research assistant for Prof. Asad Abidi who is internationally
well known for his contribution to the field of RF CMOS. They were
the over-achievers who again received several awards and scholarship
throughout their schooling years at UCLA. The field they focused
on as their graduate research was RF circuit design for wireless
systems using digital CMOS technology, a goal that seemed to be
impossible by industry belief. After completing their B.S. and M.S.
degrees, they decided to work in the industry for a few years before
continuing their doctorate in the same school. Preceding Maryam,
Reza started his PHD thesis on the implementation of a CMOS 900MHz
frequency hopped spread spectrum system for short-range wireless
applications in digital CMOS technology, where Maryam joined his
group at UCLA as a key member to help him with the research as a
part of her own Ph.D. few years later. Their Ph.D. work at UCLA
became a very successful project and got them international recognition
and awards. They are the author and co-authors of numerous international
conference and journal papers, a number of which became award-wining
papers including the 1995 European Solid-State Circuits Conference
'Best Paper AwardÓ, the 1996 International Solid State Circuits
Conference 'ISSCC Jack Kilby AwardÓ for Outstanding Paper, the 1997
ISSCC 'Jack Raper AwardÓ for Outstanding Technology Direction, and
the 1998 Design Automation ConferenceÓ Best Paper Award. Reza completed
his Ph.D. thesis in 1998 while we was working on the plans to start
Innovent System with his sister Maryam who was one year from completing
her Ph.D. at UCLA. By 1998 the two brother and sister were involved
with a lot of start-up companies as consultant or part-time and
had lived through experience and excitement of being part of a start-up
company, where they observed and learned the facts in making a company
successful or unsuccessful. The technologies they developed during
this period included system and IC designs of several wireless applications
such as GSM, GPS, CT2 Cordless phones, low-power pagers, and CDMA
front-ends using CMOS, Bipolar, BiCMOS and SiGe Technologies. Reza
and Maryam had decided to start their own company way before their
company got funded in the January of 1999. Pioneering RF CMOS at
UCLA, working in the industry with other start-ups and observing
their friends and strangers succeed in pursuing their goal and accomplishing
their mission, they were all motivated to start their own company
focusing on real application of what they had pioneered 'RF CMOSÓ.
They founded MicroLink Corporation (later known as Innovent Systems)
in the January of 1999. Reza and Maryam were co-founders, technologists
and also manages of the company, while also being key persons in
identifying strategic partners and customers. They assembled a very
strong technical advisory board with internationally known individuals
in both the academy and the industry. They also attracted a very
strong technical group to their company since day one. At MicroLink
Maryam acted as the vice president and Reza as the chief technical
officer. After the acquisition of Innovent Systems in the July of
2000 by Broadcom corp., Reza as the senior technical director and
Maryam as the technical director have been leading the development
activities of the wireless division of Broadcom.
Innovent
System was started with the mission to produce chip-sets for
short-range wireless applications for standards such as Bluetooth
and HomeRF. The company was partially funded by Broadcom Corporation
whose founders knew Maryam and Reza from their years in UCLA, where
Henry Samueli the founder of Broadcom was professor and second advisor
to Reza and Maryam. In addition to Broadcom, Cross point Ventures,
Ventana and several other angel funds participated in the first
round of finance of Innovent, then called MicroLink. The company
started its operation in 1999 and the goal was set to have the first
demonstration before the end of the year. During the operation of
Innovent systems the founders were key persons in setting directions
for the company both technically as well as marketing and business.
They were actively involved with technical development and facilitating
the development by constantly interfacing with the offshore foundry
houses, tool houses and others. In addition to the main office in
West LA where Innovent located to recruit newly talented RFIC (radio
frequency integrated circuits) graduate students from UCLA, the
founders opened an office in San Diego where they could recruit
experienced ASIC engineers from the big companies in the region.
The company was set up as a whole system provider rather than just
focusing on the chip desing. The founders knew that to make a company
big and be able to go public they had to be a system provider rather
than just a design house. Innovent delivered its first milestone
that was its first silicon chip within 6 months before the end of
1999. Innovent's first silicon chip was 98% functional despite the
complexity of the system and the company was able to demonstrate
its low cost solution to the interested potential customers. Up
to this point the company had grown to 40 people most of whom were
excellent engineers. After the first milestone the founders build
the marketing and operation side of the company. Before the middle
of 2000 the company had grown to more than 60 employees and had
numerous press releases in conjunction with Samsung and TSMC regarding
working relations and investments in its second round of finance.
The analysts had called the company 'Broadcom of wirelessÓ expecting
the company to become as big as Broadcom in the future. However,
by June of 2000, within one and a half year after its inception,
the two founders received an irresistible offer from Broadcom corp.
for a merger. After a few months the founders decided to sell the
company to Broadcom, where there was a very good synergy between
the two companies and the merger would speed up and facilitate the
volume production of their chips for entering the market faster.
The company had positioned itself to be the leader for the development
of blue-tooth standard and this merger would ensure the maintenance
of its position in the market. The merger was announced early June
for over 500 million dollars. This was one of the fastest growing
companies in terms of value and development in among all the semiconductor
companies to date. By the time that the merger was official, Innovent
had 80 employees with 50 employees at El Segundo and 33 in San Diego.
Innovent is now the center of wireless activity in Broadcom and
the founders continue to lead the activity of the wireless.
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