Summary
1. The joke about Sycamore Networks essentially being a bank has been told for years. 2. Except it has never been funny to its shareholders. 3. As one of the comments to the source article says, the company is “basically bleeding off their money.”
Analysis
Light Reading puts it very well in an editorial piece. “We've long been asked: What's Sycamore Networks...going to do with all of its cash? Now we know. Cut lots of jobs so it can hold onto every last penny.”
Certainly, the part of the “ongoing focus on expense control” is very true. However, “enhanc[ing its] product offerings” is debatable. It could be easily argued that Sycamore should not be a public company anymore. It has certainly not acted like one for a long time.
Samuel Greenholtz consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
