Acopia Networks Closes Record Quarter; Secures Additional $20 Million in Venture Funding.LOWELL, Mass. -- Dramatic Quarterly Revenue Growth of Over 40% Fueled by Rapid Customer Adoption of ARX Products
Acopia Networks(R), the pioneer of Adaptive Resource Networking, announced today that it achieved record results from Q1, 2006, reporting over 40% sequential quarter to quarter revenue growth, and that it has closed an additional $20 million round of funding. The round was led by Meritech Capital Partners, a premier late-stage venture capital firm and a new investor to the company.
Acopia's record quarter was driven by many new customer wins, including Yahoo!, DreamWorks, Novartis, Industrial Light & Magic, United Rentals Founded in 1997 by eight entrepreneurs, United Rentals, Inc. is the largest equipment rental company in the world, with more than 700 rental locations throughout the United States, Canada, and Mexico. , Massachusetts Medical Society The Massachusetts Medical Society (MMS) is the oldest continuously-operating state medical society in the United States. Incorporated on November 1, 1781, by an act of the Massachusetts General Court, the MMS is a non-profit organization that consists of approximately 18,500 , Iron Mountain, Hartford Insurance Group, and Wellington Management, along with continued expansion within several existing Acopia ARX(R) customers.
"Our first quarter results are a clear indication that the market for file virtualization See storage virtualization. products is well established, and that Acopia's products uniquely address the needs of large scale deployment," said Christopher P. Lynch, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Acopia Networks. "We expect the growth rate to continue, and perhaps accelerate further as we ramp up Ramp Up
To increase a company's operations in anticipation of increased demand.
A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product.
See also: Demand, Economies of Scale our international business."
"Our style of investing targets late stage companies that are best in class," said Paul Madera, Managing Director, Meritech Capital Partners. "Acopia's customer growth, revenue acceleration and unique ability to provide customers with a 'freedom of choice' with their storage vendors, positions them very well for an initial public offering. We are very pleased to invest in this next phase of growth at Acopia."
Meritech Capital Partners was joined in this round by Acopia's existing investors: Accel Partners, Charles River Charles River
River, eastern Massachusetts, U.S. The longest river wholly in the state, it flows into Boston Bay after a course of about 80 mi (130 km). Navigable for about 7 mi (11 km), its estuary separates the cities of Boston and Cambridge. Ventures, Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. , Star Ventures and Vesbridge Partners. Acopia Networks, the market leader in file virtualization, has raised total financing of $85 million since its inception in January 2002.
This funding round, which was based on a significant increase in valuation, will allow Acopia to aggressively expand US and international sales efforts and scale customer support operations to meet the strong market demand for its products.
About Meritech Capital Partners
Meritech Capital is a leading provider of late stage venture capital to information technology companies. With over $2.2 billion under management, Meritech seeks to lead investments in the portfolio companies of leading early stage venture capital firms Name Location Founding date Managing Partners/Directors Specialty Capital managed
5AM Ventures Menlo Park, CA; Waltham, MA 2002 John Diekman, PhD (managing partner), Scott Rocklage, PhD (managing partner), Andrew Schwab (managing partner) life sciences $200M  . Meritech pursues traditional growth companies as well as co-investments in corporate buy-outs and spin-offs. Its investments are typically in companies with proven and differentiated technology, rapidly growing revenue, and seasoned management teams. As a late stage investor, Meritech leverages a broad network of individuals and companies to create strategic and business opportunities for its investments. In addition, Meritech provides guidance on late-stage issues including management incentive plans, IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. market timing and positioning, adviser selection, and post-IPO ownership transition. Meritech is located in Palo Alto, CA. www.meritechcapital.com.
About Acopia Networks
Acopia Networks is the innovator of Adaptive Resource Networking products, a new class of file switches that uniquely solve the problem of managing unstructured data in the global enterprise. Acopia's Adaptive Resources Switches (ARX) allow customers to improve performance and better utilize existing file server infrastructure. The products also provide non-disruptive data migration, capacity balancing and replication across multiple NAS (1) See network access server.
(2) (Network Attached Storage) A specialized file server that connects to the network. A NAS device contains a slimmed-down operating system and a file system and processes only I/O requests by supporting the popular devices, thereby reducing management overhead and accelerating business workflow in the process. Information about Acopia's products and services can be found at http://www.acopia.com.
Acopia corporate headquarters are located at 41 Wellman Street, Lowell MA. Phone: 978-513-2900, email: email@example.com. Its European headquarters are at Acopia Networks EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. , Humboldstr. 12, 85609 Munich-Aschheim/Dornach, Germany. Phone: 49-89-944-90-165. Email: firstname.lastname@example.org.
2006 Acopia Networks, Inc. Acopia is a trademark of Acopia Networks. All other brands, products, or service names may be trademarks or service marks of the companies with which they are associated.