Telecommunications service carriers use Quarry's equipment in metropolitan networks to provide their customers different kinds of services like encryption or
voice-over-IP that can generate more sales.
"One of the reasons we like Quarry is that the company is involved in the 'last mile' space, and (that) space is going to experience strong demand" for services, said Steve Lazarus, a managing director at ARCH
Venture Partners, an early stage venture capital firm that has funded Quarry.
The company also managed to raise capital during the current dark times for
equipment makers; spending cutbacks from carriers have withered away
the resolve of investors to fund new opportunities.
Redback Networks bought IP
equipment maker Abatis Systems last October for $636 million and has seen its stock fall from about $145 a share to Tuesday's close of $15.94.
Another potential competitor, Cosine Communications, has slipped to $1.63 from a 52-week high of $71.
Quarry will use the proceeds from the round to advance product development,
marketing and sales, and to hire more staff.
Quarry Technologies announced Tuesday that it completed a $38 million third round of financing highlighted by an investment from optical equipment maker Corvis.
Discuss: Start-up Quarry chisels out $38 million
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