Home / Mory Ejabat 
Mory Ejabat, formerly of Lucent Technologies Inc. (NYSE: LU) and Ascend Communications, is chairman, cofounder, and CEO of startup Zhone Technologies Inc. And he doesn't think small. During the telecom turmoil, Zhone has been quietly scarfing up the orts of an industry suffering from indigestion. Zhone is no small project. To start the company, Ejabat, along with CTO and cofounder Jeanette Symons, raised $500 million in leveraged buyout money and venture capital. Its subsequent acquisition binge has been based on a strategy of buying some legacy technology with revenue streams and combining that with next-generation technology. Most recently the company acquired Nortel Networks Corp.'s (NYSE/Toronto: NT) DSL access equipment assets (see Zhone Acquires Nortel's Access Gear). Zhone has also bought CAG Technologies, an electronics subsystems maker; Premisys Communications, whose Integrated Multiple Access Communications Server (IMACS) provides most of Zhone’s revenues; Roundview, a group of networking software engineers; OptaPhone Systems, maker of point-to-point wireless systems; and Xybridge Technologies, a softswitch vendor that produces devices designed to replace central office circuit switches with faster packet switches (see Zhone to Acquire Xybridge). Ejabat is widely known in the industry for his success as CEO at Ascend Communications, which he sold to Lucent in 1999 for $24 billion. He considers Rich McGinn, the former CEO of Lucent who stewarded that massive transaction, as a friend. ($24 billion? We all wish we had friends like that!) Most recently, this famous (or infamous) friendship got McGinn some increased scrutiny after he was ousted from Lucent, when it became public that McGinn had individually invested in Zhone, a Lucent competitor, when he was CEO (see McGinn Backed Lucent Competitor. Ejabat's name elicits varied reactions in the industry. Some mumble that he's all about the money, rather than the technology. Others, most notably those on Wall Street, are fine with this concept. Mory's heavy-handed management activity following Ascend's merger with Cascade Communications – before Ascend was acquired by Lucent – roiled the Cascade crew, many of whom now reside either at Sycamore Networks Inc. (Nasdaq: SCMR) or among a flotilla of Boston-area startups. Little is known about Zhone's finances since the spring of 2001, when it pulled its filing for an initial public offering (see Zhone Zhaps IPO ). At the time of the last filing, made in December 2000, the company reported it had revenues of $60.5 million and losses of $129.6 million in 1999. At the time, Zhone still had $140 million in cash left. Ejabat claims the company has been growing revenues quarter-over-quarter since then.