Searching for high-bandwidth options? Digital Subscriber Line (DSL) holds the promise of cost-effective bandwidth for homes and small businesses, and Copper Mountain Networks, Inc., provides products that use existing copper telephone lines for high-speed connectivity for voice, data, private networks, and more.
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Running fast in a faster market
In the rapidly expanding DSL market, Copper Mountain Networks, Inc. (CMNI), is running fast to maintain its leadership role. The company started in 1996 and has been touted as one of the market leaders of DSL products. Copper Mountain supplies high-speed DSL products to telecom carriers who, in turn, supply DSL to their respective markets.

Copper Mountain products enable telecom companies to provide high-bandwidth connectivity up to 1.5 Mbps on a single copper pair and up to 12 Mbps using inverse multiplexing technology. The products include concentrators, concentrator line cards, network management tools (such as configuration, fault analysis, and monitoring), and customer premise equipment (CPE).

These products support voice and data access, virtual private networks (VPNs), and frame relay. High-profile customers include:

  • UUNET/MCI Worldcom
  • Rhythm NetConnections
  • NorthPoint Communications
  • MCG Communications
  • ICG Communications
  • BTI

Fiscal year 1999 was a great one for Copper Mountain, as it reported record revenue and income. In March 2000, the company opened its first international office as it penetrated the Asia/Pacific market. Copper Mountain has also received several recognitions, including Upside Magazine’s 1999 Hot 100 Award, and Worth Magazine’s #1 of 50 fastest-growing companies.

The market
If you want broadband access to the Internet, you’re potentially part of Copper Mountain’s market.

One of the company’s recent milestones was the February 2000 acquisition of California-based OnPrem Networks, a low-density DSL provider with a market of multi-tenant units. And the market is expected to expand. With ongoing deregulation in the Asian market, research analysts forecast more than 4 million Asian DSL subscribers by 2004. DSL subscribers in the U.S. are predicted to number approximately 6 million by the end of 2002.

Strategic advantage
In addition to its recent opening of an international office in Asia, Copper Mountain also has established several impressive partnerships, including 3Com, Lucent, Rockwell Seminconductor Systems, Netopia, TollBridge Technologies, and Vertical Networks.

Financial information
A privately held company for three years, Copper Mountain had an IPO on May 13, 1999.

Its stock split 2 for 1 in November 1999. Reflective of the growth in the DSL industry in 1999, Copper Mountain had record fourth-quarter 1999 revenues of $33.6 million, up from $14.7 million a year earlier.

Fiscal year revenues for 1999 were $112.7 million, up from $21.8 million for FY 1998. Income was also up for FY 1999 to $12.2 million, as compared to a net loss of $10.3 million in FY 1998.

Management team

  • Rick Gilbert, president & CEO
  • Joe Markee, chairman, CTO, and co-founder
  • Mark Handzel, vice president of customer service & co-founder
  • John Creelman, vice president of finance & CFO
  • Steve Hunt, vice president of engineering
  • Mike Kelly, vice president of sales
  • Bryan Long, vice president of marketing
  • Diana Helfrich, vice president of marketing communications
  • Mike Staiger, vice president of business development
  • Joe Harrington, vice president of operations
  • Wil Cochran, vice president and general manager, MTU business unit
  • Chris Carroll, vice president of human resources

Palo Alto Office
2470 Embarcadero Way
Palo Alto, CA 94303
Tel: (650) 687-3300
Fax: (650) 687-3372
What others are saying about Copper Mountain
“Copper Mountain had the business market almost to itself in the crucial 1997 to 1999 period when DSL was emerging as a likely mainstream technology. In the third quarter of 1999, Copper Mountain accounted for almost 40 percent of all business DSL equipment sold—more than 13 percentage points higher than its closest competitor, Lucent (LU), according to the Dell’Oro Group research and consulting firm. These statistics translate into even bigger numbers ahead. The overall market for DSL equipment, including both business and consumer varieties, totaled $970 million last year and, according to Dell’Oro, should exceed $2.3 billion this year.”

—Robert Poe, “Copper Mountain in the fast lane,”Upside Magazine online, March 9, 2000.

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