April 24, 2001, 4:23 PM — Edgix, a start-up that taps broadband satellite networks to transmit caches of data across the Internet, is in financial trouble, sources within the company said last week.
Sources say the company has laid off most of its employees and is ceasing operations at the direction of its board. Only a skeleton crew is left to sell off the company's intellectual property and assets, according to company sources. Edgix CEO Rangu Salgame would not comment.
"Edgix is restructuring its business and is looking at pursuing a variety of options," says Abhi Chaki, a vice president at Edgix. He refused to divulge those options or restructuring.
Edgix was co-founded in 1999 by Drew Major, former chief architect of Novell and now CTO of Volera, Novell's caching and content delivery spinoff, and several other individuals with backgrounds from UUNET, Bell Atlantic, Level 3, Cisco, Microsoft, Bell Labs, Novell, Motorola, Hewlett-Packard and Lucent.
Edgix isn't alone among suffering companies in the caching and content delivery field. Recently, Infolibria, Inktomi and CacheFlow have laid off employees. Akamai topped $1 billion in losses last year and has laid off 14% of its employees.
Edgix specializes in Internet edge services with caching, streaming and Usenet news services for service providers. Its caching services are based on Volera's Excelerator software. Some of Edgix' customers are Intellispace.net, Everest Broadband, MM Internet, WT.Net and chello Broadband.
The company's products compete with Cidera, which just raised $75 million in preferred stock funding. Edgix received first-round funding of $15 million from Battery Ventures and Venrock Associates, as well as an undisclosed amount from Novell Ventures.